Same - closed my puts for $0.25 each - 1 day and $1 gain each... Nice.
Still have my CC's for next week that I rolled from $120 --> $125, going to let the theta burn for a bit on these as long as we don't go over $130.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Still have my CC's for next week that I rolled from $120 --> $125, going to let the theta burn for a bit on these as long as we don't go over $130.
SebastienBonny
Member
No- Mentioned last week - these are from assigned Puts at $175 (CB was $170) and with CC's and the roll down to about $166
Will just keep rolling up and out, no big deal.
In general, the people who have done the best are those in the main thread that have bought and held. It is very difficult to not lose money long term trading options with a stock as volatile as TSLA, even for experienced traders. The Trading Course will get you started, but be prepared to lose (a lot) more money than you make. This thread has resulted in members losing their trading accounts/retirements, going bankrupt, and even dying.
i think my 1/13 -p105 and -c130 are ready for tomorrow's CPI
the question is, should i move them now to 1/20 (to get the credits) and play the IV crush and then bring them back to 1/13 this Fri?
i dunno if that makes sense...
helpmeeeeeeeeeeeee
the question is, should i move them now to 1/20 (to get the credits) and play the IV crush and then bring them back to 1/13 this Fri?
i dunno if that makes sense...
helpmeeeeeeeeeeeee
If you roll back from 1/20 to 1/13, you're trading theta for intrinsic value. I'm assuming you would only do this because you would be fairly certain about the direction of the stock after the CPI prints? If there's no certainty (or at least a better guesstimate), then aren't you adding more risk by rolling back?
As others have said, this is a dangerous game and any option plays you do, any at all, carry the risk of massive losses
However, if I were wanting to increase my share count in your position then I would sell weekly covered-calls at a premium that will buy you 12x TSLA. You'd need around $1500 to do that, so you could go for 15x $1 premiums, -c140's for next week, or 40x 0.38, which would be -c150's, or any other permutation that suits your risk tolerance
The benefit of writing a smaller %age of your shares is that you can roll ITM's up and out, but still have contracts available to write for the next week. The benefit of writing 40x low premiums is that based on history, the SP hasn't moved more than 23% up Friday to Friday
But history means nothing and we're at a very low share price now. Just needs good CPI, DED pivot, strong Tesla earnings and guidance, CyberTruck order page, etc., and TSLA could go up 5% daily for a month. We've seen this before, we'll (hopefully) see it again. Then what will you do and how ill you feel? At least you can get wiped-out like with puts or spreads, but you could lose out on a lot of potential gains
Be very, very careful. If you do play this game, start small, play safe, take profits sooner rather than later
You will ge burned, we all got burned, some of us fatally
Edit: to add, you can also sell puts at the strike you sold your shares for, or slightly lower, it might not bring much, but it's essentially risk-free premiums... so if you sold at the absolute low, $101.20 then 6x 1/20 p-100's would net you $200, and a lower CDA if they were to exercise
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I agree. Best case, one needs to dabble with options for a couple of years, keep trade sizes small, and get a feel for the difference between realty and what the options business promotes. Personally, options volatility never seems overstated enough for the associated options premium trading risk. Also, one needs to experience down markets where options rolling can clean the proverbial clock.
That’s 15% more shares, so assuming that you are able to do “safe” CCs, you might earn 0.5%/wk, so about 6mo. I’ve earned up to 1%/wk on CCs, but definitely lose some weeks and need to roll or close for loss. Since you would be new to options, a year might be a conservative estimate. Example, 1/13 -c130s are about $1, so 3/4%. Are they “safe”? Unfortunately, unknown, that’s why people play.
I know your goals, and everyone else, may be different. While away at work, I missed closing a -110/+105 BPS this morning for what could have been 85% ... good enough return for 1 day. At that same time I could have opened a +137/-132 BCS for just under a dollar with similar intentions, to skim when possible. It's just how I am personally managing risk.
OT: Checking roll targets into Jun '25, Fidelity only shows put strikes up to 240. Is that the same on other platforms?
EVNow
Well-Known Member
Once you study the course, you will understand how much you can make every week depends on IV and how for OTM you sell the call. This post tells you about 16% is "safe" by looking at history. So, you can figure out at various IV how much you can make.
Options volume 1/13 (where contracts > 500) snapped at 1PM. Call to put ratio, 2.3:1
EVNow
Well-Known Member
Here is an easy comparison of Call premiums for various OTM % & IV, at different SP.
When SP was around 1,000 (pre-split), targeting 10% OTM with IV around 60%, I could get $5 premium. Now I'm targeting 15% OTM and with SP around 125, I get only ~30 cents on a $5 spread.
Let me know if you want other combinations.
When SP was around 1,000 (pre-split), targeting 10% OTM with IV around 60%, I could get $5 premium. Now I'm targeting 15% OTM and with SP around 125, I get only ~30 cents on a $5 spread.
Let me know if you want other combinations.
1000X YES to the last sentence. I thought I was not being greedy with all my BPSs because I was far OTM and thought I could roll my way out. Lost 2/3 of my retirement shares and my plane.
The same applies to Bull runs. A member of TMC who doesn't post much anymore lost out on all the large gains from 2019 on because his CC got trapped (lost his shares) and he could never buy back in where he wanted. CC could get dangerous in the coming months/year if you plan on keeping your shares for the next 10X TSLA growth.
EVNow
Well-Known Member
Markets appear to be expecting a cooler print, question is, how cool, and if in line with market expectation, will it sell on the news or rally more? If the numbers come in hot, what then, big sell-off? If numbers come in very cold, will the FED roll out some talking-heads to throw a spanner in the works?
As for TSLA, we already rallied >20% today from last Friday's pre-market low, that's already huge. We have three bit call-walls at 120 / 125 / 130, l would expect the Hedgies to defend those
SebastienBonny
Member
I closed all my 127. Trimmed my 129s. Closed a few at higher strikes cause they are cheap what is the point of sweating it. Kept all my 129s in my tax free account. Don't care what happens there.So not closing your contracts today? I’m in doubt
Rolling my CCs worked flawlessly last year, but this year may well be a different story.
Obviously should have been buying calls the past week.
We forget quickly just how hard TSLA sold off and how quickly it might decide to trade in the 180s again, which, if I recall correctly, was the opportunity of a lifetime!
4x -c115 that I was looking to close as I'd already opened the same for next week and wanted to complete the roll, but it's so few contracts that if necessary I can throw them way out and upSo not closing your contracts today? I’m in doubt
Also have 52x -c130's that I don't expect to go ITM, but if they do I may let half of them exercise to de-risk. That would be on shares that were put between 180 - 200, but I've milked a LOT of premium out of them already, so net loss wouldn't be much and, as I said, it would be a de-risking manoeuvre
If we're looking to be going back up, the easy money will be made selling puts, not calls, so a bit more cash in the bank would be welcome
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