Wiki Selling TSLA Options - Be the House

[mongo]

I guess if you are selling CSPs, having them expire before earnings are announced is of value. But these are so far ITM, I guess I'm confused (as usual) as to the play. Clearly, they expect the SP to rise between now and then.

For the noted position, it's a DITM sold put so it moves like shares (1:1 at current price, less so as it approaches $233) but with a (very) small inital gain from the time value.
May be looking for short term upward movement with possibility of rolling or closing early.

 

[OrthoSurg]

BTW, folks, apologies for my vulgar post yesterday, which was subsequently deleted, I guess by Fred ggr (thanks you, sir!). Like many other I'm chronically stressed with recent events, and I'd also drank a considerable volume of strong beer... I know we're all adults here, with the exception od @ZeApelido, but it wasn't appropriate at all

I didn’t even find it vulgar, it was exactly what I thought.

Sold 13/1 120CCs at the end of the day.
Because I just want the stock to go up and feel like playing with fire. I am tired of margin calls and want to roll CCs up to feel good and alive again.

 

[ReddyLeaf]

https://twitter.com/x/status/1610777135936950275

I guess if you are selling CSPs, having them expire before earnings are announced is of value. But these are so far ITM, I guess I'm confused (as usual) as to the play. Clearly, they expect the SP to rise between now and then.

For the noted position, it's a DITM sold put so it moves like shares (1:1 at current price, less so as it approaches $233) but with a (very) small inital gain from the time value.
May be looking for short term upward movement with possibility of rolling or closing early.

This has been happening on the January monthly for quite awhile. If anyone wants to search back, you can see that I posted about this at least twice earlier, probably a month or more ago now. It didn’t make any sense then, and might not now……..but…….

What if this is a slight-of-hand maneuver to actually BUY shares from the MM, avoiding having the purchase show up during regular trading? Instead it shows up after hours, at closing cross, whatever? So, sell 20,000x DITM 250 strike put for $136.85, no time value left so it’s assigned immediately or overnight, and voilà, you just bought 2M shares at $113.15. Easy peasy, no big spike in buying during the day to drive up the price. The MMs create the shares (per their Madoff exemption as @Artful Dodger has been saying).

Check out MaxPain website, massive numbers of contracts traded TODAY, some >80,000, at lots of DITM strikes, with very small number of contracts showing as OPEN. How is that possible, unless they were sold, THEN immediately exercised? I eyeball at least 350,000 DITM contracts traded just today (35M shares)!

Edit: here’s one of my previous posts: Here
Maybe somebody should sell a DITM CSP tomorrow and see if it’s immediately exercised or if they wait until overnight. Hmmmm.

 

[zach_]

This has been happening on the January monthly for quite awhile. If anyone wants to search back, you can see that I posted about this at least twice earlier, probably a month or more ago now. It didn’t make any sense then, and might not now……..but…….

What if this is a slight-of-hand maneuver to actually BUY shares from the MM, avoiding having the purchase show up during regular trading? Instead it shows up after hours, at closing cross, whatever? So, sell 20,000x DITM 250 strike put for $136.85, no time value left so it’s assigned immediately or overnight, and voilà, you just bought 2M shares at $113.15. Easy peasy, no big spike in buying during the day to drive up the price. The MMs create the shares (per their Madoff exemption as @Artful Dodger has been saying).

Check out MaxPain website, massive numbers of contracts traded TODAY, some >80,000, at lots of DITM strikes, with very small number of contracts showing as OPEN. How is that possible, unless they were sold, THEN immediately exercised? I eyeball at least 350,000 DITM contracts traded just today (35M shares)!

Edit: here’s one of my previous posts: Here
Maybe somebody should sell a DITM CSP tomorrow and see if it’s immediately exercised or if they wait until overnight. Hmmmm.

The last time you brought this up, I looked, and it was happening to other stocks around the same times as well. Just look at AMZN for example, gigantic put volume today as well, same expiry as well. So whatever it is, it's not unique to TSLA.

It is curious though

 

[adiggs]

This has been happening on the January monthly for quite awhile. If anyone wants to search back, you can see that I posted about this at least twice earlier, probably a month or more ago now. It didn’t make any sense then, and might not now……..but…….

What if this is a slight-of-hand maneuver to actually BUY shares from the MM, avoiding having the purchase show up during regular trading? Instead it shows up after hours, at closing cross, whatever? So, sell 20,000x DITM 250 strike put for $136.85, no time value left so it’s assigned immediately or overnight, and voilà, you just bought 2M shares at $113.15. Easy peasy, no big spike in buying during the day to drive up the price. The MMs create the shares (per their Madoff exemption as @Artful Dodger has been saying).

Check out MaxPain website, massive numbers of contracts traded TODAY, some >80,000, at lots of DITM strikes, with very small number of contracts showing as OPEN. How is that possible, unless they were sold, THEN immediately exercised? I eyeball at least 350,000 DITM contracts traded just today (35M shares)!

Edit: here’s one of my previous posts: Here
Maybe somebody should sell a DITM CSP tomorrow and see if it’s immediately exercised or if they wait until overnight. Hmmmm.

Wouldn't buying a DITM put enable you to SELL your shares at the strike price?

For a sneaky way to acquire shares you need to sell DITM calls and exercise. Of course the MM, to remain delta neutral, will buy up those shares when they sell you the calls, so the buying pressure in the market will be there - it'll just be the MM making the buys.

 

[mongo]

Wouldn't buying a DITM put enable you to SELL your shares at the strike price?

For a sneaky way to acquire shares you need to sell DITM calls and exercise. Of course the MM, to remain delta neutral, will buy up those shares when they sell you the calls, so the buying pressure in the market will be there - it'll just be the MM making the buys.

The 223s were sold
Rest of the list were purchases

 

[Dig deeper]

I want to share this video to explain *some* of what is going on with recent price action and specifically this huge monthly expiration.

As these put positions get closed, either ITM/OTM, the pressure on the stock should start to abate.

Not sure that this is the bottom but it was one of the catalysts I was expecting/hoping for. These kind of opex trades by dealers/MM/arbs tend to have a bigger influence on the stock price in the short term than some company/ fundamental catalysts.

Take with a huge grain of salt but reading these options flows is important imo. Good luck to all.

 

[BornToFly]

Why did the futures and TSLA tank the last 90 minutes?

 

[chrsk]

Why did the futures and TSLA tank the last 90 minutes?

US Employers Add 235,000 Jobs, More Than Forecast​

 

[Max Plaid]

US Employers Add 235,000 Jobs, More Than Forecast​

Indeed, people being in jobs, paying taxes, not claiming social, it's bad, apparently, and will lead to a recession /s

Surely, if anything, consumer goods stocks should be buoyed by high employment...?

And of course Shorty McShortFace is back in town...?

 

[OrthoSurg]

Indeed, people being in jobs, paying taxes, not claiming social, it's bad, apparently, and will lead to a recession /s

Surely, if anything, consumer goods stocks should be buoyed by high employment...?

And of course Shorty McShortFace is back in town...?

At this point, I dont known if market fears more rate hikes from the fed trying to control inflation or fear more a recession. Or fears both and any news is bad news.

Support at 107 seems to hold
At least is bounced there

 

[bballshinobi]

Indeed, people being in jobs, paying taxes, not claiming social, it's bad, apparently, and will lead to a recession /s

Surely, if anything, consumer goods stocks should be buoyed by high employment...?

And of course Shorty McShortFace is back in town...?

It’s better for the stock market in the short/medium term to have a crap economy but infinite liquidity than a good economy with declining liquidity. The market in general just tracks how much liquidity the fed is pumping in.

 

[CHGolferJim]

Uhhhh, I am showing these at $0.15 - are you sure you are not looking at a different expiration???

I wanted to sell a LOT of these and it's not there.

Good grief, bookmark didn’t update [post deleted].

 

[dc_h]

What happens if the SP goes to 200 ?

The puts are worthless (good for me) and the calls go from $10 to $80. The problem is if the price goes to $50, the calls are worthless and the puts are worth $35 and I'm in a bad place.

 

[adiggs]

The 223s were sold
Rest of the list were purchases

That's true - sell the DITM put and hope for assignment. Or wait for it to happen at expiration. EIther way you get shares put to you at the strike - premium price, aka the price of the shares when you sell the put.

 

[OrthoSurg]

I didn’t even find it vulgar, it was exactly what I thought.

Sold 13/1 120CCs at the end of the day.
Because I just want the stock to go up and feel like playing with fire. I am tired of margin calls and want to roll CCs up to feel good and alive again.

Couldn’t close them this morning because I was doing 2 joint replacements,’they cancelled my 2 other cases this afternoon because there are no hospital beds available (4 nurses called off because the road conditions were icy this morning) Just logged in to close my sold CCs from yesterday and they are now +20%. This morning they were probably +50%. Losing money at work, losing money in the stock market, losing money selling options. What a wonderful day

 

[ReddyLeaf]

This just came across my news feed, and 8 min earlier there was a brief SP spike. Related? What does it mean? Edit: Trying an IC again today, sold 80/90 BPS this AM, and just did the 115/125 BCS before that brief SP spike. Watching to see how this develops.

TD Ameritrade Tweets 'At This Time, Tesla, Inc. TSLA Is Eligible For Purchase With Day Trade Buying Power. Keep In Mind That This Is Subject To Change At Any Time.'​

BENZINGA. 1:28 PM ET 01/05/2023

https://twitter.com/x/status/1611051809769914371

 

[kabin]

This just came across my news feed, and 8 min earlier there was a brief SP spike. Related? What does it mean? Edit: Trying an IC again today, sold 80/90 BPS this AM, and just did the 115/125 BCS before that brief SP spike. Watching to see how this develops.

Good news. Apparently TSLA price action is settling down and TDA feels comfortable adding day traders which arguably take more risk and can transact more than their daily balances given the time it takes for trades to clear etc.

 

[OrthoSurg]

Good news. Apparently TSLA price action is settling down and TDA feels comfortable adding day traders which arguably take more risk and can transact more than their daily balances given the time it takes for trades to clear etc.

Seems like consolidating around those levels after Twitter selling, max FUD, capitulation, P&D miss and employment numbers not as expected. Hope buyers are soon to line up and ready to buy for a rally in the 180 to retest the lower high before the lower low.

 

[juanmedina]

We need to start buying weekly OTM calls again and turn this ship around .