Wiki Selling TSLA Options - Be the House

[ShareLofty]

Happy New Year to everyone here! You are mostly all just usernames, avatars and words on the screen to me but I feel like I know a lot of your personalities more than many people I actually am in contact with in my life. This is a great family here and I am happy to have been around for all these years. Here’s to a great 2022 for Tesla/TSLA and all of you and your families!

RIP Peter. Y’all remember it’s only money and your family and friends love you either way

 

[Jim Holder]

MTM put out a very long video (1.5hrs) yesterday, the first in a while.

He's still bearish overall but expects a short week or 2 rally after CPI before recession fears drag the market down into March based on earnings and guidance.

For this week specifically, my summary/interpretation of what he's anticipating:
Monday: Generally an level or up day for the market. (Turning out to be a very good up day for specifically TSLA.)
Tuesday: Market turning negative again based on Feds Jerome Powell speaking at 9am and expecting Hawkish comments.
Wednesday: Uncertainty, possible run up to CPI.
Thursday: CPI out before market open. Expecting low reading causing a market rally but would be opposite if CPI comes in hot.
Friday: Smaller continuation of rally similar to past CPI prints before fading the next week.

Be careful, this could be a volatile week, especially given the strong start for TSLA.

Edit: Resistance at $123 noted by Cory seems to be playing out so far. If this breaks Cory expects a quick trip to the next resistance at $138.

Kal Maom (MTM) sounds so young but has quite a following, including some here and seems to know what he’s talking about. Do you or anyone here know who he is/his story?

 

[intelligator]

Sticking to my plan, I did not open anything today. Ideally, -130/+135 BCS could have been sold for $1 while at 123.30 or so; some of us did, nice snag! I'm going to aim for the same or -135/+140 Tuesday if we spike up. The other direction, will look for -103/+98 BPS into the low teens and if we slide to low hundreds, -97/+92 for the same $1. Will aim to fit the opposite side if I we don't see that wide a swing end to end. If done right, the IC would be $5K of margin at risk for 10 contracts returning $2 credit. Last week I put together an IC for $1 total, was happy just the same.

 

[OrthoSurg]

RIP Peter. Y’all remember it’s only money and your family and friends love you either way

He had great words and was really supportive when I posted about my bad year with my father and brothers passing away. Saying he almost felt he learned to know me better than some of his friends.
I really appreciated his support, it helped me and also appreciated him. Really sad I never met him. Really sad to see him go like this. I knew some people financial lives would be destroyed by wallstreet greed, these rigged games make victims and Peter is one of them, one of us. RIP Peter. My wishes to his wife, his kids, his family.

TSLA was the investment of a lifetime, it’s changed us all, made us Teslanaires and then wallstreet drowned some of us into the abyss. Losing good people like this is a total disaster.

Focus on the people around you, the only important thing are the people who love you. Money is an invention of human being to have power on others. When in distress, go out, do the things you love with the people who care about you. Money doesn’t care about you. Stock market doesn’t care about you. Do not let wallstreet win.

 

[traxila]

He had great words and was really supportive when I posted about my bad year with my father and brothers passing away. Saying he almost felt he learned to know me better than some of his friends.
I really appreciated his support, it helped me and also appreciated him. Really sad I never met him. Really sad to see him go like this. I knew some people financial lives would be destroyed by wallstreet greed, these rigged games make victims and Peter is one of them, one of us. RIP Peter. My wishes to his wife, his kids, his family.

TSLA was the investment of a lifetime, it’s changed us all, made us Teslanaires and then wallstreet drowned some of us into the abyss. Losing good people like this is a total disaster.

Focus on the people around you, the only important thing are the people who love you. Money is an invention of human being to have power on others. When in distress, go out, do the things you love with the people who care about you. Money doesn’t care about you. Stock market doesn’t care about you. Do not let wallstreet win.

I am devastated by this. He had every reason to live. I cannot believe that this was all just about money in the market.

I wish he has reached out to the people in his life for some help and encouragement. We all find ourselves in a dark place sometimes. You just need some one to turn on a light for you.

RIP, Peter.

 

[dl003]

Is the hedging because after $127 (and $140) it’s almost near definitely (well, high probability…) TSLA is revisiting $100 (or lower ) again and therefore we’ll need the hedges to protect our accounts?

(FWIW I’m always surprised by this market psychology, either it’s worth $140 or $100; that it swings so manically within a few days/weeks is just nuts for logical thinkers.)

It's likely that we will retrace at least 50% of the runup once we're big time rejected by a certain level. Is it gonna be 140? 160? Hard to say without looking at the future chart but 140 is where we should at least find some strong resistance . If not a 50% retracement, 20% - 30% and some choppy consolidation should be in order. That's an extra week or 2 of call premium but the risk : reward dynamic at that point will be different if you're underwater so sacrificing call premium for put protection I think will be smart there. Of course this is just a very rudimentary plan since we're still a ways away. The swing was so erratic because of the ungodly high volume. It is trending down, but very slowly so I'd say that if we're greeted with another piece of bad news within a week or 2, can easily visit the 100s again or might even break it. I'm astounded, to say the least. So many shares traded and so many people trying to get out of TSLA and just as many scooping shares up. It's insane.

 

[dl003]

He had great words and was really supportive when I posted about my bad year with my father and brothers passing away. Saying he almost felt he learned to know me better than some of his friends.
I really appreciated his support, it helped me and also appreciated him. Really sad I never met him. Really sad to see him go like this. I knew some people financial lives would be destroyed by wallstreet greed, these rigged games make victims and Peter is one of them, one of us. RIP Peter. My wishes to his wife, his kids, his family.

TSLA was the investment of a lifetime, it’s changed us all, made us Teslanaires and then wallstreet drowned some of us into the abyss. Losing good people like this is a total disaster.

Focus on the people around you, the only important thing are the people who love you. Money is an invention of human being to have power on others. When in distress, go out, do the things you love with the people who care about you. Money doesn’t care about you. Stock market doesn’t care about you. Do not let wallstreet win.

I don't know what to say. I'm truly heart broken. That could have been any of us, only one or 2 bad calls away. I remember him, too. Please take care of yourself, guys. You may lose some shares or even all of it but you earned them once, you can earn them again. Protect your nest egg. Take care of the basics first. It's ok if we have to wait years.

 

[GrmMastrDoobie]

This sucks. When I'm hoping the price will go up, it just keeps going down. When I'm hoping it will go down, it just keeps going up. Looks like my heirs are going to be a few million poorer than if hadn't panic sold back in 2023 at the very bottom. And no I'm not going to have any heirs anytime soon if I can help it. Still not sure when I'm going to panic buy back in. Hopefully below where we're at.

 

[Max Plaid]

I am devastated by this. He had every reason to live. I cannot believe that this was all just about money in the market.

I wish he has reached out to the people in his life for some help and encouragement. We all find ourselves in a dark place sometimes. You just need some one to turn on a light for you.

RIP, Peter.

Yes, it's terrible thing and one can only think of his family left behind and how devastated they must be

But I can also appreciate how this can happen. I'm one of the more fortunate insomuch as I don't have margin, but I still live in fear of having to sell shares at low prices for some unforeseen event, and the the chronic stress I have been under the last 12 months has been immense. In 2019 when I had a couple of $100k, it wasn't a big deal when it got halved, in 2022 the stakes were much higher, and to see $millions evaporate is another experience altogether

There were times when I was in a very dark place indeed. Constantly living in hope that tomorrow, or the next hour, minute, even, things will turn-around, only for it to get worse. It has been constant and, as I said a while back, soul-destroying. If I had been margin-called as well, I don't know what my state-of-mind would have become

In any case, communicate with your spouses, loved-ones, confidantes, or the degenerates here. Don't suffer in silence or try to hide the situation. Sometimes just opening-up and sharing the problem is enough, even though it won't present any solutions

 

[vikings123]

Yes, it's terrible thing and one can only think of his family left behind and how devastated they must be

But I can also appreciate how this can happen. I'm one of the more fortunate insomuch as I don't have margin, but I still live in fear of having to sell shares at low prices for some unforeseen event, and the the chronic stress I have been under the last 12 months has been immense. In 2019 when I had a couple of $100k, it wasn't a big deal when it got halved, in 2022 the stakes were much higher, and to see $millions evaporate is another experience altogether

There were times when I was in a very dark place indeed. Constantly living in hope that tomorrow, or the next hour, minute, even, things will turn-around, only for it to get worse. It has been constant and, as I said a while back, soul-destroying. If I had been margin-called as well, I don't know what my state-of-mind would have become

In any case, communicate with your spouses, loved-ones, confidantes, or the degenerates here. Don't suffer in silence or try to hide the situation. Sometimes just opening-up and sharing the problem is enough, even though it won't present any solutions

I’m pretty sure you speak for most if not everyone in this thread.

While it is devastating to see millions get wiped off we should all remember that our TSLA investments are positive. While it is difficult not to think about the lost millions it is also not difficult to imagine us being at ATHs if you preserved your bankroll/positions. And while I appreciate that for most here that does not mean their accounts get to ATHs it is the risk we took and we live and learn.

And a big YES to talking to your loved ones about your situation. It’s just money and as long as you are healthy and happy you can overcome anything. And folks giving up your life is not a solution no matter how bad you are feeling.

As many of you know I quit my job at the end of 2021 and while I still made consistent monthly income the drawdown in my capital/ investment has outpaced my income by a big margin. I made some moves a couple of months ago for survival and that is still giving me a chance to live the dream.

That said the stress is not worth it. So while I’m thankful to have a new source of income I also plan to go back to work a regular job. You win JPow. No excuses and nobody to blame. You take the learnings and life goes on.

 

[Max Plaid]

Did we just doge a bullet today?

https://twitter.com/x/status/1612811831499710464

 

[SebastienBonny]

One thing I'm thinking about. If some of you went from 100s of thousands of dollars to a couple of million. Why didn't you guys put some in a "safe" world-wide ETF and just enjoy dividends for that part of your portfolio?
It's not like that at the moment, but I plan balancing my portfolio near 25% TSLA, 25% World-wide ETF and 50% cash (for options or opportunities).

 

[OrthoSurg]

This sucks. When I'm hoping the price will go up, it just keeps going down. When I'm hoping it will go down, it just keeps going up. Looks like my heirs are going to be a few million poorer than if hadn't panic sold back in 2023 at the very bottom. And no I'm not going to have any heirs anytime soon if I can help it. Still not sure when I'm going to panic buy back in. Hopefully below where we're at.

I read an interesting book about how giving money in heritance to heirs is like opening the valve of a dam when thei used to live close to the river and you drawn them into wealth, they don’t know what to do with it since they never learned how to accumulate money and it could destroy a whole generation of intrinsic motivation to work since they can do whatever they want without working and without taking responsibilities. I have to fin de back the title of that book, it was written by a psychologist who treated the families of the billionaires in Hamptons, NY. Mainly where kids were living on the expanse of their parents during their whole lives and giving money away was destroying their lives. Really changed my vision of how to legate money to my kids. I wanted them to have millions now I told them I would pay their school and they would be on their own, no money till they are 60.

In the book they recommended giving away starting at age 60 about 3 times the average annual salary from the last 5 years of work. This way it prevents having kids doing nothing of their lives but it gives them the security of a retirement with no stress. You have to create a fiduciary structure for that.

 

[UltradoomY]

One thing I'm thinking about. If some of you went from 100s of thousands of dollars to a couple of million. Why didn't you guys put some in a "safe" world-wide ETF and just enjoy dividends for that part of your portfolio?
It's not like that at the moment, but I plan balancing my portfolio near 25% TSLA, 25% World-wide ETF and 50% cash (for options or opportunities?

I thought this was funny, not trying to be mean.

The idea is that right now - Tesla is growing 50% per year (slight miss this year - 87% last year) this means production, earnings, new factories, new products (Energy, AI, Bot, etc.) and there isn't anywhere else to get exposure to that much upside outside of Tesla.

Now as we have seen, TSLA can lag or overshoot and it certainly lagged hard last year, but as many including @adiggs have cautioned to be prepared for at least a 50% drop any year.

This means having cash on hand or dry powder to fund living expenses and possibly buy the dip.

Safe dividend ETF's are great if you are older or planning to retire - but if you are still young or in the wealth building stage of life - right now there currently is no "Public" company on earth growing both production and earnings faster than Tesla.

(not advice)

 

[Max Plaid]

One thing I'm thinking about. If some of you went from 100s of thousands of dollars to a couple of million. Why didn't you guys put some in a "safe" world-wide ETF and just enjoy dividends for that part of your portfolio?
It's not like that at the moment, but I plan balancing my portfolio near 25% TSLA, 25% World-wide ETF and 50% cash (for options or opportunities).

Timing the market is hard

 

[Yoona]

https://twitter.com/x/status/1612813638817181699

 

[CHGolferJim]

I read an interesting book about how giving money in heritance to heirs is like opening the valve of a dam when thei used to live close to the river and you drawn them into wealth, they don’t know what to do with it since they never learned how to accumulate money and it could destroy a whole generation of intrinsic motivation to work since they can do whatever they want without working and without taking responsibilities. I have to fin de back the title of that book, it was written by a psychologist who treated the families of the billionaires in Hamptons, NY. Mainly where kids were living on the expanse of their parents during their whole lives and giving money away was destroying their lives. Really changed my vision of how to legate money to my kids. I wanted them to have millions now I told them I would pay their school and they would be on their own, no money till they are 60.

In the book they recommended giving away starting at age 60 about 3 times the average annual salary from the last 5 years of work. This way it prevents having kids doing nothing of their lives but it gives them the security of a retirement with no stress. You have to create a fiduciary structure for that.

This does merit a great deal of thought, and there are various additional considerations:
- equity between all children with differing personalities and approaches to $ (such as choice of profession with low compensation)
- college funds for any grandchildren
- avoid suggesting a lack of trust in childrens’ judgement
- possibly modeling contributions through direct gifts to favorite causes
etc.

 

[UltradoomY]

This does merit a great deal of thought, and there are various additional considerations:
- equity between all children with differing personalities and approaches to $ (such as choice of profession with low compensation)
- college funds for any grandchildren
- avoid suggesting a lack of trust in childrens’ judgement
- possibly modeling contributions through direct gifts to favorite causes
etc.

Obviously wayyyyy off topic here but my wife and I have created a family trust for our children, their descendants and charity with models for paying out based on milestones and ages

Please DM if you wish to discuss - we can add more people or start a new thread and tag me.

 

[OrthoSurg]

This does merit a great deal of thought, and there are various additional considerations:
- equity between all children with differing personalities and approaches to $ (such as choice of profession with low compensation)
- college funds for any grandchildren
- avoid suggesting a lack of trust in childrens’ judgement
- possibly modeling contributions through direct gifts to favorite causes
etc.

Yes it is a really complex topic and depends a lot on the kids personality, responsibilities and motivation.

Found back the book and recommend reading Fables of Fortunes from Richard Watts.

Hope we manage to break out the 123 resistance today with the good news of Powell not speaking!

 

[vikings123]

One thing I'm thinking about. If some of you went from 100s of thousands of dollars to a couple of million. Why didn't you guys put some in a "safe" world-wide ETF and just enjoy dividends for that part of your portfolio?
It's not like that at the moment, but I plan balancing my portfolio near 25% TSLA, 25% World-wide ETF and 50% cash (for options or opportunities).

It’s too late to be making these suggestions . The time do this was 12 months ago. There were signs but we focused on the fundamentals of the company and here we are.