Wiki Selling TSLA Options - Be the House

[mickle]

Unfortunately, it seems the fastest and easiest way out of this mess is to start trading options again! Now that I'm in cash maybe I can try some of those cash account strategies a few people here are doing. Are those working out ok during this drop? I felt like I was in BPS prison for the last year and I've finally been freed. Not looking to get caught again.

 

[Jim Holder]

Kevin is smart and insightful to say the least, here’s some TSLA options info he just dropped that may be of value as we try to make sense of things for the days and weeks to come:

https://twitter.com/x/status/1607976521502982144

 

[myt-e-s-l-a]

Important dates for 2022 year end

-The last day to sell long stock and option positions for tax year 2022 will be Friday, December 30th.

-Short stock and short option positions generally use settlement date on closing trades instead of trade date for tax purposes.

-The last day to buy to cover short stock positions for tax year 2022 will be Wednesday, December 28th.

-The last day to buy to close short option positions for tax year 2022 will be Thursday, December 29th.

 

[Max Plaid]

Woah, someone started buying...

 

[Noneduck]

Woah, someone started buying...

View attachment 889519

About time. Jeez

 

[OrthoSurg]

Woah, someone started buying...

View attachment 889519

Oh wow,
From -2% PM to +2%

Now that’s going to scare some shorts to cover, I hope this madness reverses.

 

[OrthoSurg]

I also have regrets not acting when we were at 250 and 309 but then I remind myself that none of us—truly no one—could have foreseen how low and how fast we dropped.

I’m not an expert, though finger in the wind I feel we’re close to a bottom and am hopeful.

Godspeed to all of us!

Even the bearish bears were calling $140 and started buying at $140 like CGS who deployed 7.5%

They just didn’t realize how strong the margin calls force was going to drop it till $104 before we reverse and buyers come back in play. I hope this is what is happening this morning.

 

[Max Plaid]

Oh wow,
From -2% PM to +2%

Now that’s going to scare some shorts to cover, I hope this madness reverses.

I think was -3.5% at one point and +6.5% - either a big short covering or a whale feeding, seems to have a buy order set around $111.50

If I were a retail short and saw that chart, I would be worried for sure, it's a clear sign that this could reverse at any moment and tip into a squeeze

 

[OrthoSurg]

I think was down -3.5% at one point and up 6.5% - either a big shirt covering or a whale feeding, seems to have a buy order set around $111.50

If I were a retail short and saw that chart, I would be worried for sure, it's a clear sign that this could reverse at any moment and tip into a squeeze

I dreamed yesterday TSLA was +15% premarket and my 6/1 129CCs were underwater and had to manage them. My prescience was one day off and 12% away.

 

[OrthoSurg]

Almost +4% now,
There is certainly something going on and signs of reversal

 

[juanmedina]

My girlfriend and I decided to get out of TSLA last night with the stock around 122 at close. Our account values were below what we really needed to live on through retirement. We got up early this morning and saw it dropping more and panicked (more). Sold almost all our shares in premarket around 117, and later in the day closed any of our BPS that were likely to get assigned tonight. This might be the first night we can sleep in a week, though we still haven't gotten over the shock. We have lost a lot, will have to hustle to be able to keep paying our mortgage and stay where we are. In the end, might need to sell the house within a few years and go somewhere cheaper. We will probably put our cash into interest savings or CDs until we see a general economic recovery starting, (maybe that's 3-12 months from now), then maybe start slowly buying back shares. Its been fun but now I'm feeling like I wasted 3 years of my life trading and ended up down in the final month.

My wife said the same thing to me yesterday 2.5 years of life wasted stressing over a stock.

 

[Max Plaid]

Pre-market has been a slight glimmer of hope in these dark times, but if that whale starts unloading again in main market, won't count for anything... I guess we'll see...

Nevertheless, it's a small warning to shorts what can happen when the tide turns

 

[JustMe]

My girlfriend and I decided to get out of TSLA last night with the stock around 122 at close. Our account values were below what we really needed to live on through retirement. We got up early this morning and saw it dropping more and panicked (more). Sold almost all our shares in premarket around 117, and later in the day closed any of our BPS that were likely to get assigned tonight. This might be the first night we can sleep in a week, though we still haven't gotten over the shock. We have lost a lot, will have to hustle to be able to keep paying our mortgage and stay where we are. In the end, might need to sell the house within a few years and go somewhere cheaper. We will probably put our cash into interest savings or CDs until we see a general economic recovery starting, (maybe that's 3-12 months from now), then maybe start slowly buying back shares. It’s been fun but now I'm feeling like I wasted 3 years of my life trading and ended up down in the final month.

If you’re looking for relatively safe returns, consider buying some TSLA back and selling ATM long dated CCs.

Jan 2025 $110 calls are going for $41. That means you’d break even as long as TSLA is above $70 two years from now. If TSLA is at or below current share price, you make almost 20% per year.

The opposite trade is actually looking pretty good too for anyone with dry powder and risk tolerance.

 

[soundart2]

Exact same situation as you I will have to sell around 10% of my TSLA to cover my margin call.

However since I can’t trader premarket with my broker and my broker only calculate the margin requirement at midnight at the end of the trading day I am more inclined to let the day go, let everyone be liquidated by their broker and hope for a hammer candle and recovery at the end of the day heading into a Christmas rally. I hope the day play out like 27th February 2022 when we started -6% premarket, then It recovered to +2% at the end of the day. At these lows, liquidating myself at the market open or let my broker do it tomorrow I don’t really care anymore it’s sh1tty both sides

Sorry. Just so unfortunate. Hope the pre market today bodes well for a little spike today and that u can catch that at least.

 

[bingoz]

If you’re looking for relatively safe returns, consider buying some TSLA back and selling ATM long dated CCs.

Jan 2025 $110 calls are going for $41. That means you’d break even as long as TSLA is above $70 two years from now. If TSLA is at or below current share price, you make almost 20% per year.

The opposite trade is actually looking pretty good too for anyone with dry powder and risk tolerance.

I thought $41 is a debit and with that Jan 2025 $110 call, the break even is at $151? No?

 

[juanmedina]

Here is some advice frome Chicken. If you have margin sell, if you believe in the company hold because is too late to sale but it will be a very long hold.

 

[JustMe]

I thought $41 is a debit and with that Jan 2025 $110 call, the break even is at $151? No?

Yes - if you’re buying those calls, that’s the break even.

If you’re selling them backed by shares you’ll break even if the share price stays above $110 - $41 = $69

 

[vikings123]

Yes - if you’re buying those calls, that’s the break even.

If you’re selling them backed by shares you’ll break even if the share price stays above $110 - $41 = $69

If this is a taxable account you just have to take into account that all call premiums collected are taxed as short term capital gains.

 

[bingoz]

Yes - if you’re buying those calls, that’s the break even.

If you’re selling them backed by shares you’ll break even if the share price stays above $110 - $41 = $69

Ah it's a sell, my bad. Yep, it's a pretty good hedging strategy, but the profit is locked at $41 in 2 years, which I'm not really a fan. I'd like to buy DITM LEAP better, i.e. 50 or 60 strike price.

 

[BornToFly]

HOW I'M MANAGING MY LATEST PUT ASSIGNMENTS:

I was assigned Jan 2025 330 and 320 short legs in my account, and Jan 2024 280s in my mom's IRA.

Instead of trying to time the market and sell the shares myself, and then sell to close the long leg, I called Fidelity and told them to exercise the long leg for me (which also has no real time value left). So for my 300/330 BPS, I "bought" shares at $330 last night, and someone else will buy them from me for $300. So I'm taking full loss on the spread, but that is better than what has happened to me in the past when I couldn't get orders to go through and actually lost an extra dollar/spread. They said I should see the changes in my account in the next 1-2 hours.

After that, I need to decide what I'm doing with the rest of my spreads. It looks like they are all in danger. I may close them all out for a huge loss, and try a Bull Credit spread to try to get that money back. Of course, if the SP doesn't go up, I lose the premium on the Bull credit spread also. Something like Buying 300Call and Selling 330Call for a maximum $30 profit minus the spread cost to open.