Break even on the position, but it's a loss if stock is above 151 in two years. (Like it was last week)
(Also ignoring share basis)
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
(Also ignoring share basis)
Converting more shares today to leaps - same January $200's which are almost 5 to 1 (5 leaps for 100 shares)
Going to do 3 to 1 though and save the excess cash for future deployment.
Cheers and don't forget - if you're going through Hell.. Keep going!
Going to do 3 to 1 though and save the excess cash for future deployment.
Cheers and don't forget - if you're going through Hell.. Keep going!
SebastienBonny
Member
Sold jan 25 200 CC again for 23.
(sold it yesterday for about the same, closed for 20 at the end of the trading session).
Looking to sell 140 CC for next week, but waiting until premium of 2/share.
Edit: closed it @21.
Hopefully we’ll see upside again now.
(sold it yesterday for about the same, closed for 20 at the end of the trading session).
Looking to sell 140 CC for next week, but waiting until premium of 2/share.
Edit: closed it @21.
Hopefully we’ll see upside again now.
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Is your expectation something like you can exit for <$10 during the next 6 months? Or are you willing to let those shares go in 2 years at $200. Might be an interesting play for a buy-write within a portfolio of various TSLA plays (~50% annual return If held to assignment, and could be rolled if things go crazy).
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The tell here is the volume again which looks like it might come in higher than yesterday:
The comparables to the other tickers are ridiculous. Our seller is not done. This is most probably an EOY deal to unload all the shares they do not want.
The comparables to the other tickers are ridiculous. Our seller is not done. This is most probably an EOY deal to unload all the shares they do not want.
SebastienBonny
Member
Well I sold this to raise money for a 100 PUT to get out if margin issues until 50.
I actually don’t expect that contract to go down a lot since I don’t think this selling will continue. I won’t let the shares go in 2 years for 200.
These are my scenarios (know that contract is closed again now):
If jan 25 200 CC gets to 23ish again, I’ll sell it again.
In the event the 200 CC only gains in value, I will buy it back when it gets ITM.
I have a sold 210 PUT (the reason I needed more margin, ie 100 bought put).
When the 200 CC gets ITM, the 210 PUT will have lost a lot of premium.
I will roll that put up to gain higher premium to be able to close the 200 CC.
As I don’t think we will fall back to these levels soon should we pass 200 again, I can sell the 100 PUT again for what‘s left of it at that point. I’ll add cash monthly as well to keep in the account as cash to raise margin. So all combined this is an effort the avoid margin calls and get some premium meantime.
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I am stuck in the middle, ran out of non-TSLA shares to fund closing DITM BPS. Seems that wash sale rules for shares put to me as part of a BPS wiped out the tax losses of high cost basis sold TSLA shares, although shares put to me were sold same day. Liquidating more high cost basis TSLA needed to close out DITM put spreads will be handled as a wash sale when my CSP (60% losing) is assigned. I will be paying taxes on money that is no longer in the account. How ugly things can turn out...
That sucks. I've only begun to try to understand the options tax side but the wash sale rule is a bummer with options in general. Closing a BPS or even rolling an option can trigger a wash sale rule. Apparently few brokers properly document the end of year forms, few CPAs understand the rules, and the rules are convoluted on top of all that.
EVNow
Well-Known Member
Options are basically considered same as underlaying stocks. Buying calls = buying shares etc. Infact even selling calls/buying puts too close to SP is considered as de facto selling of shares.
In 2019 when I had massive losses, I let the calls expire to make sure I had not touched the stock/options for 30 days both ways (so, no trading for 60 days).
Don't forget we've got the uptick tule in place today
Nevertheless, shorts will short without that. I think whoever was selling paused for today, but look at the macro, AAPL down the the crapper, good that TSLA is green
Just because (if) CWI was selling, doesn't mean they exited their full position, but given the total change in price action today, it seems clear it was a whale unloading (which someone knew had stopped pre-market, started to load up...)
Nevertheless, shorts will short without that. I think whoever was selling paused for today, but look at the macro, AAPL down the the crapper, good that TSLA is green
Just because (if) CWI was selling, doesn't mean they exited their full position, but given the total change in price action today, it seems clear it was a whale unloading (which someone knew had stopped pre-market, started to load up...)
Took this green day to switch to a bigger bandaid to the gunshot wound.
BTC 12/30 -140c ($0.04 debit)
STO 1/6 -100c ($14.20 credit) SP around $110.32
Positions
12/30 -100c ($29.75 credit)
1/6 -100c ($14.20 credit)
1/6 -80c ($32.52 credit)
EVNow
Well-Known Member
Are you going by volume .... since TSLA is up compared to the market ?
In general we should expect double the volume ~100 SP compared to ~200 SP.
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We are tracking 200% plus average volume while market is tracking near 50%
Someone is still selling hard, but buyers are here today. Tomorrow? Dunno….
Rolled 12/30 -c120s to -c115s (left -c118s); small account all CCs.
Rolled 12/30 1:1.5x 120 straddles down to -p110s/-c115s strangles in larger IRA account. If we close between 110-115, still trying to decide whether to let those puts exercise or roll to 1/6 for a couple $$ credit.
Bought another 25 shares. Still have enough free cash to round out another 100 share lot at the current SP, but waiting until Friday to see if the SP breaks down anymore. Put in a GTC order at $94.87 (e.g. if we fill that gap from 2 years ago), which if filled means that my CCs will be safe and the puts not.
In the other large ROTH account, went ahead and rolled 12/30 -p115s to 1/6 -p110s for decent credit, but kept the 12/30 -c115s (hoping to close Friday for pennies). I “think” the SP will stay below $115 until Friday, but, if wrong, will roll to -c120s or 125s, or just accept the loss on the CCs….. ooops while writing this the SP jumped from $110 to $113.50 so looks like I might be wrong. Edit: naw, it’s just some intern hit the wrong button over their lunch hour, everything back to “normal “ at 13:00.
Rolled 12/30 1:1.5x 120 straddles down to -p110s/-c115s strangles in larger IRA account. If we close between 110-115, still trying to decide whether to let those puts exercise or roll to 1/6 for a couple $$ credit.
Bought another 25 shares. Still have enough free cash to round out another 100 share lot at the current SP, but waiting until Friday to see if the SP breaks down anymore. Put in a GTC order at $94.87 (e.g. if we fill that gap from 2 years ago), which if filled means that my CCs will be safe and the puts not.
In the other large ROTH account, went ahead and rolled 12/30 -p115s to 1/6 -p110s for decent credit, but kept the 12/30 -c115s (hoping to close Friday for pennies). I “think” the SP will stay below $115 until Friday, but, if wrong, will roll to -c120s or 125s, or just accept the loss on the CCs….. ooops while writing this the SP jumped from $110 to $113.50 so looks like I might be wrong. Edit: naw, it’s just some intern hit the wrong button over their lunch hour, everything back to “normal “ at 13:00.
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EVNow
Well-Known Member
Got assigned 165 puts. Not a big deal considering I'm not on margin ... and I was assigned a big chunk of puts at 340 in Feb
ps : A few lessons.
- Selling Puts isn't that safe. I thought I was playing "safe" by just selling puts rather than invest in one stock. Should have invested in broad market, after I decided to exit TSLA long position end of last year. Now I'm back nearly 100% in Tesla and my account is 60% down for the year.
- Luckily I always paid quarterly taxes and kept tax money separate.
- Never used margin (after my disastrous attempt at in in 2019)
pps : I'm going to HODL for long, hopefully TSLA will recover in a year or two.
ps : A few lessons.
- Selling Puts isn't that safe. I thought I was playing "safe" by just selling puts rather than invest in one stock. Should have invested in broad market, after I decided to exit TSLA long position end of last year. Now I'm back nearly 100% in Tesla and my account is 60% down for the year.
- Luckily I always paid quarterly taxes and kept tax money separate.
- Never used margin (after my disastrous attempt at in in 2019)
pps : I'm going to HODL for long, hopefully TSLA will recover in a year or two.
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Yeah, on reflection I think you're right, the seller is still selling, way too much volume. Big difference is that some equally large whale has decided it's a good price-point to load-up the truck and seems to be grabbing all they can...
Could be an inspired move if P&D were to surprise to the upside! (we can dream...)
Could be an inspired move if P&D were to surprise to the upside! (we can dream...)
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