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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I closed my edges yesterday expecting a rally however the opposite happens, like always.
Capped during up days and going down following macros the red days.
To avoid managing margin calls every day of my life I have 2 options; 1) selling all my shares and close all my underwater puts and buying $200 Jan25 LEAPS.
2) sell Jan25 200CCs on my whole position
There's plenty of shares to go around. Of course once the option is close to 100 delta the short put option is about even with 100 shares of stock so the put option becomes up for grabs. After the transaction though only time says which side had the smart money.
With assignment you get them shares ...
I had a couple of TDOC (TeleDoc Arkk favorite
) PUTS assigned overnight and got the beautiful email in the morning.So sold the shares on open, Sold Jan 25 $30 Puts and so far the trade will break even. (But added 2 years of time)
e.g. Had sold Jan 23 40 Puts for $6
Got assigned today, sold stock for $25, and sold Jan 25 30 Puts for $9
40-25 = 15 (SP difference)
PUTS premium $6(initial), $10 today = $16.
So still up $1 if it is above $30 in Jan 2025.
They were for this week
I guess I should be pleased that I made big effort to roll them down and reduce contracts, they were originally 10x -c200 + 10x -c195, managed to roll down to 11x -p180 by straddling with calls...
Gives me 2600 "trading" shares then that I can not stress about too much if they exercise
IV up slightly again today. In the last 5 days IV for the current expiration cycle increased 13.2%.
I think they're using it to provoke margin calls, which means although you get shares assigned, in my case at 180, then I get called and am forced to sell them at market, 132
Fortunately I don't use margin at all, so although it's not what I wanted, it's not the end of the world either and I can stop worrying about them now
Also BTC 15x -p145's @$11, decided to cut my losses there. I think selling puts from here is very dangerous still
. Perfectly normal.Uhh.. this feels like what happened to Nokia around 2010, when the stock lost around 90%.
Only difference that Nokia had incompetent leaders, were losing the business and actually would have gone bankcrupt if Microsoft hadn't bought them.
Meanwhile Tesla is breaking record after record. Will we really go below 100?
Only difference that Nokia had incompetent leaders, were losing the business and actually would have gone bankcrupt if Microsoft hadn't bought them.
Meanwhile Tesla is breaking record after record. Will we really go below 100?
Could someone help me understand BPS assignment vs max loss?
If I had a BPS for say 150/200, my max loss should be 50.
If I get early assigned, am I paying 200/share to purchase, or am I getting credit for the value of the assigned put?
In otherwords, if after assignment I just want to close the BPS for max loss of 50, can I just sell the shares and sell the long put? Or do I need to sell the shares, resell the short put, and then close the BPS? Or is it just too late after assignment and I've lost even more than max?
I am so confused. Got a lot of assignments this morning!
If I had a BPS for say 150/200, my max loss should be 50.
If I get early assigned, am I paying 200/share to purchase, or am I getting credit for the value of the assigned put?
In otherwords, if after assignment I just want to close the BPS for max loss of 50, can I just sell the shares and sell the long put? Or do I need to sell the shares, resell the short put, and then close the BPS? Or is it just too late after assignment and I've lost even more than max?
I am so confused. Got a lot of assignments this morning!
Yeah, once assigned there is no BPS and you are long the 150 put so you can execute that to sell the shares at $150. Or sell both the shares and put to also recover the time value.
Sold 12/30 -100c ($29.75 credit), SP around $129.31. I have CC on all my shares now.
Considering BTC some cc and roll down., or sell more shares, I think I'm close to 80% loss even with these moves.....
Positions
12/23 -160c ($5.00 credit)
12/30 -140c ($5.53 credit)
12/30 -100c ($29.75 credit)
1/20 -175c ($14.65 credit)
Shitputs from here onwards: STO 26x 12/31 -c150 @$0.82 -> honestly might melt these exercise, but I struggle to see a 15% reversal in the next week
And a small downside hedge in case this continues and the P&D makes it even worse: STO 10x 1/6 -c115 @$18.3 -> these I'll roll if necessary
TBH though, feels like Q4 delivery of around 420 cars, not 420k is the consensus, totally nuts!
And a small downside hedge in case this continues and the P&D makes it even worse: STO 10x 1/6 -c115 @$18.3 -> these I'll roll if necessary
TBH though, feels like Q4 delivery of around 420 cars, not 420k is the consensus, totally nuts!
Trying to counter the $0 $0 margin cash buying power left situation, I sold some non-TSLA to raise cash, some at a loss. Also sold some TSLA, highest cost basis that I was gifted via assignment a few months back. Looks like I may need to let a few more go. I'm so skeptical of price now, not sure I want to roll this week's 130/135 BPS... down $5 and out is break even, January after earnings. It'd avoid assignment this week, so that will be the deciding factor. Anyone see us closing Friday above 135?
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