Wiki Selling TSLA Options - Be the House

[OrthoSurg]

I called and canceled my Roadster reservation this afternoon (1hr, 20 minutes on hold).
I told me guy to sell my share of the jet.
I'll probably be assigned more spreads tonight for a full loss.


So much regret....

And Elon on Twitter space saying he won’t behave himself to pump the stock. The cream of the crop of the comments to end this beautiful day with a -11% TSLA after the greatest sell off of the decade because of the blue swan event. I canceled my Cybertruck reservation online and am glad to hear my house renovations will be delayed 9 months because there will be delays to make the custom made cabinets. I have no free money on hand. Everything tied to support the margin of underwater put all about to be assigned and margin called.

It’s going to be fun to work to pay the 6% interest rate on 1.6M of assigned shares between 350 and 420

What a ****ing disaster.

I wonder how many of my shares will be liquidated before this *sugar* show finishes. I wonder how many of my original shares will be decimated.

My second life investment experience where I go -90% in one year. I am getting used to it. First was BBD.B, now TSLA, probably going to manage to turn my AAPL in -90% investment, I don’t know how yet, can’t wait to find out.

 

[BornToFly]

My Mom's account has three different ARK funds that are down around 72%. I'm thinking of taking the losses on those and putting what's left into TSLA. I figure that has the best chance of getting the money I initially invested back. Thoughts?

 

[Yoona]

thinking out aloud... it seems like the "safest" way to earn "high" $ nowadays and lower risk is Iron Condor 1DTE?

by late Thursday afternoon, one should already have a sense of where the sp is generally closing the next day via maxpain, p/c walls, supp/res lines (ie tomorrow is 120-140?)

that's assuming there is no expected news on friday (cpi/fomc/opex/labor/etc)

for ex, sp is 126.75 so STO +p105/-p115/-c140/+c150 x100 will give $2700 credit for one day per 100k capital

of course, income is higher if opened monday 4DTE on dip/peak legging but risk is also higher

strangle/straddle/BW won't generate the same 2.7% ROI in one day

thoughts?

 

[OrthoSurg]

My Mom's account has three different ARK funds that are down around 72%. I'm thinking of taking the losses on those and putting what's left into TSLA. I figure that has the best chance of getting the money I initially invested back. Thoughts?

I am a point in my life where I will only recommend to people buying SPY and QQQ. One company can get mass raided down by shorters to oblivion with an agenda against a company or against someone.

For the people who like risk and YOLO their lives I will recommend buying TQQQ and SPXL when all the indicators are met for a bull market.

 

[Yoona]

My Mom's account has three different ARK funds that are down around 72%. I'm thinking of taking the losses on those and putting what's left into TSLA. I figure that has the best chance of getting the money I initially invested back. Thoughts?

we have opposite mindset - my feeling is to temporarily get OUT of tsla because i am so very very sick of EM's endless drama plus the MMD

last yr, one can survive by getting around the MMD and 15% OTM, but nowadays the attack is just relentless and i have no defense against it - all supp lines are failing and prems on the res lines are negligible with CC whipsaw very real

 

[Jim Holder]

we have opposite mindset - my feeling is to temporarily get OUT of tsla because i am so very very sick of EM's endless drama plus the MMD

last yr, one can survive by getting around the MMD and 15% OTM, but nowadays the attack is just relentless and i have no defense against it - all supp lines are failing and prems on the res lines are negligible with CC whipsaw very real

Reading all the pain and misery here, especially your own exasperation and frustration when you’ve always been optimistic and positive, we must be near a bottom. All the books I’ve read on the market say in one way or the other that when we all start feeling and talking this way is usually when the bottom is near or in.

May it be soon and may we all make it through with the least mental, emotional, and financial damage possible—and recover quickly whatever we lost.

 

[OrthoSurg]

Reading all the pain and misery here, especially your own exasperation and frustration when you’ve always been optimistic and positive, we must be near a bottom. All the books I’ve read on the market say in one way or the other that when we all start feeling and talking this way is usually when the bottom is near or in.

May it be soon and may we all make it through with the least mental, emotional, and financial damage possible—and recover quickly whatever we lost.

Cory thought today was full blown capitulation. Hope he is right.

 

[traxila]

Reading all the pain and misery here, especially your own exasperation and frustration when you’ve always been optimistic and positive, we must be near a bottom. All the books I’ve read on the market say in one way or the other that when we all start feeling and talking this way is usually when the bottom is near or in.

May it be soon and may we all make it through with the least mental, emotional, and financial damage possible—and recover quickly whatever we lost.

I will be the first to cheerlead that thought!

But we have a ways to go, especially with macro.

A great PCE reading would be a terrific way to start tomorrow!

 

[bingoz]

Just want to share something that might explain what happened today and why TD Ameritrade decided to turn off margin for TSLA buying power.

https://twitter.com/x/status/1605992111517466624

 

[JSML]

Just want to share something that might explain what happened today and why TD Ameritrade decided to turn off margin for TSLA buying power.

https://twitter.com/x/status/1605992111517466624

TD Ameritrade did not change margin calculations on Tesla stock in my account. Exactly the same as before.

 

[Jim Holder]

TD Ameritrade did not change margin calculations on Tesla stock in my account. Exactly the same as before.

It was only day trading abilities in some accounts that was turned off from what I’ve heard.

 

[samppa]

yeah.. when was it that Elon said no more tesla stock sales planned?
And then he went on a selling spree a couple weeks later?

He hasn't got a lot of credibility here.

 

[soundart2]

Could use some advice/tips/tricks if anyone has them. I'm trying to juggle some puts I sold that I'm underwater with, as well as trying to protect myself from a potential margin call (as I'm getting too close for comfort).

Specifically, in the summer/fall I sold a 233 Put that is expiring in Jan 23. At the same time, I also bought a 100 P for the same time period. So technically, I guess it's a spread (and actually I have 3 of each because of the split). Needless to say, I'm deeply underwater on this trade. I could roll out the 233 Put out to Jan 25 for a ~220 Put. Buys me some time.

But I am worried about the margin aspect, as I'm butting up against my limit. I also previously sold some longer dated Puts LEAPS expiring in Jan 24 and Jun 24 (3 for each), both at 266 level. I guess I have some time to let those recover a little, though, again, I'm wondering if there's a smart way to reduce their current affect on my margin.

Since I don't have spreads for those sold put Leaps, I imagine BUYING lower strike puts for that timeframe would reduce the affect of my margin. See Jan 24 100P goes for about 19, so could buy 3 100 strike puts for 6k. Hate to spend the capital, but maybe the best option.

Any thoughts/advice from the gurus would be much appreciated.

 

[Chenkers]

thinking out aloud... it seems like the "safest" way to earn "high" $ nowadays and lower risk is Iron Condor 1DTE?

by late Thursday afternoon, one should already have a sense of where the sp is generally closing the next day via maxpain, p/c walls, supp/res lines (ie tomorrow is 120-140?)

that's assuming there is no expected news on friday (cpi/fomc/opex/labor/etc)

for ex, sp is 126.75 so STO +p105/-p115/-c140/+c150 x100 will give $2700 credit for one day per 100k capital

of course, income is higher if opened monday 4DTE on dip/peak legging but risk is also higher

strangle/straddle/BW won't generate the same 2.7% ROI in one day

thoughts?

I would say the 'safest' is not to sell options like IC's now but to buy them. The problem with an IC or any type of spread in this volatility is the max loss can easily be >15x the amount earned. That's why I've shifted my strategy from selling spreads to day trading shares, C+ and P+ around the MMD or general declines. If I'd still been in my usual BPS these last 2 weeks I'd be in a (more) massive hole now.

Take for example a $131 P+ in yesterday's trading. They were less than $1 shortly after open and clalimed to over $9 around the low. Max loss on 10 of these would be $1k and you could get out of these for much less if rising not dropping. So $9k max return for <$1k at risk. I actually just missed getting into this but it doesn't take many hits to make up for stop losses being hit.

 

[vikings123]

I would say the 'safest' is not to sell options like IC's now but to buy them. The problem with an IC or any type of spread in this volatility is the max loss can easily be >15x the amount earned. That's why I've shifted my strategy from selling spreads to day trading shares, C+ and P+ around the MMD or general declines. If I'd still been in my usual BPS these last 2 weeks I'd be in a (more) massive hole now.

Take for example a $131 P+ in yesterday's trading. They were less than $1 shortly after open and clalimed to over $9 around the low. Max loss on 10 of these would be $1k and you could get out of these for much less if rising not dropping. So $9k max return for <$1k at risk. I actually just missed getting into this but it doesn't take many hits to make up for stop losses being hit.

I have actually been using this strategy for a few months ago and I like it. TSLA is going to so volatile in general and especially on Fridays. I usually buy 2 puts for every call..similar premiums or you could make it a bull call spread on the call side and buy puts. Obviously got lucky with the Elon sales.

For todays trading I’m already hedged with Jan 23 140 puts(bought when Tesla broke 134/135 like I mentioned in my post yesterday, also added some Dec 30 120 puts. I will close these based on the action today. I use Dan’s levels to help me decide when to hedge and when to take it off. It’s like a cheat sheet.

If we gap up today which is highly unlikely I wouldn’t mind buying at the open something like the 125$ puts that expire today.

 

[Chenkers]

If we gap up today which is highly unlikely I wouldn’t mind buying at the open something like the 125$ puts that expire today.

Selecting strikes depends on where we open but on Friday's there's very little time value left so even strikes within a couple of dollars of the open are relatively cheap. I like to choose strikes that have a decent chance of going ITM if there's a run in one direction as that's where the big upside is. Usually open Puts on the initial pop and calls at the end of the MMD, although calls haven't done much lately. Then just either set stops or be disciplined in closing if it's heading into loss territory. Getting out while there's still only a small loss still allows getting back in later if the trend solidifies.

 

[Max Plaid]

Dan Ives cut PT again to $175, lowered Q4 estimates to 410k - 415k, but said the following as well:

 

[SebastienBonny]

Dan Ives cut PT again to $175, lowered Q4 estimates to 410k - 415k, but said the following as well:

View attachment 888189

If analysts keep on cutting their PT's because the stock goes down, I wonder how they calculate their PT's. As far as we know the company performs as it should be, so a PT should remain the same.

 

[Max Plaid]

If analysts keep on cutting their PT's because the stock goes down, I wonder how they calculate their PT's. As far as we know the company performs as it should be, so a PT should remain the same.

Well we know that most of them don't have a clue, they're just playing to the audience...

 

[OrthoSurg]

Dan Ives cut PT again to $175, lowered Q4 estimates to 410k - 415k, but said the following as well:

View attachment 888189

I hope he is right on stock bottom because with the 100k extra premium I made from selling ATM CCs and adding 65k to my account, I avoided a margin call by 35k this morning. So my plan is to roll my CCs up and out as soon as stock recovers above 130. Now selecting 150 in February2023 or 400 in Jan2025 I don’t know but that would have saved me a liquidation.