Wiki Selling TSLA Options - Be the House

[SebastienBonny]

Well interesting day to come.
WS will probably punish the stock, which is good for our CC's.
We'll have to wait til earnings to have some more news about margins.

 

[CrunchyJello]

Welcome to the TSLA roller coaster. What ever happens, it will be interesting. My plan was always to hold my 11/13 -p/-p120 straddles until tomorrow, no matter what. Now……..WHAT……oops, didn’t expect a massive drop in vehicle prices.

What is the “-p” in “-p/-p120”?

 

[chrsk]

We just went from 20 times forward P/E To 60 times forward P/E.

According to data from Rob Maurer were not that far of prices from pre covid. Imagine the P/E back then if your right

 

[Chenkers]

Guys, remember what happened last time when Tesla dropped pricing in China. Just don't panic

I expect this time we'll see a bit of a different rection in TSLA compared to when the China price cuts were announced. Prior to the China cuts TSLA was trading at around $110 and then dropped to $101.2 during pre-market trading on Friday 6th Jan. China demand problems had been weighing down the stock for a while so a relief bounce on China demand resolution plus buying off resistance close to $100 was significant enough to cause a strong rally through Friday to $114.

This time we are right at resitance at $123 with room to the downside before resistance at around $108. There's also been less time that the market has been weighing US demand and inventory concerns with articles about US inventory only very recent. So I could see us gapping down pre-market and trading lower after open before recovering for a bit. We have strong Put walls at $110 and $115 so I don't expect MM will let us fall too far for Friday's close. Either way it will be an interesting days trading and I'll have P+ and C+ orders ready to go to try and capitalise either way.

 

[SebastienBonny]

Now at 117. Don't think it makes sense yet planning to close CC's today, because we could go back higher at open.
If not: closing them for sure as it will be a 50% daily gain. This should go higher again. Tesla Germany seems to have confirmed these cuts are the result of lower costs.

 

[SpeedyEddy]

Bought a few shares premarket @ $117. This is a big warning to legacy auto that they have been too late and will now loose it all to Tesla and (first and foremost outside USA) to the Chinese brands. Hitting Toyota with its own old trick of conquering the market, lowering COGS and then increase prices. Valley of death is nearing (old tech out, not enough new tech available yet, where $TSLA is positioned best for delivering all of it's production).
Macro I stay very cautious.

 

[SpeedyEddy]

When will WS get this master-move? (World-wide, my Dutch Tesla ordered was €71045 and is now €64045, so I will take the €250 cancellation fee with a smile, if they don't change pending orders to new pricing.)

 

[chrsk]

When will WS get this master-move? (World-wide, my Dutch Tesla ordered was €71045 and is now €64045, so I will take the €250 cancellation fee with a smile, if they don't change pending orders to new pricing.)

Based on my experience in the past(for Norway) they adjust the prices, so I would not be worried.

 

[Max Plaid]

Based on my experience in the past(for Norway) they adjust the prices, so I would not be worried.

This is a MASSIVE power-move from Tesla - all other EV's suddenly look expensive, ICE, who would buy and ICE with a MY at this price and tax-credit?

As for existing orders, prices in Belgium were way higher than other EU countries, now they're put them more in-line with the rest so the drop in my pending MYLR Quicksilver is €12k less, I hope they price-match that because the value of out M3P also dropped by 10%, so we'll get less trade-in and have to find more money to make the change

I also expect short-term dip, but longer term will recover to a decent SP pretty quick - don't forget that Tesla raised prices a lot in the last couple of years based on supply-chain and logistics increasing cogs. Both of these are now lower, disruptions have eased, cogs is less, the impact on margins will likely not be as bad as some fear and then there's the reported ramping and huge margins on TE that Wall Street has no clue about

Q4ER can't come soon enough...

 

[SebastienBonny]

This is a MASSIVE power-move from Tesla - all other EV's suddenly look expensive, ICE, who would buy and ICE with a MY at this price and tax-credit?

As for existing orders, prices in Belgium were way higher than other EU countries, now they're put them more in-line with the rest so the drop in my pending MYLR Quicksilver is €12k less, I hope they price-match that because the value of out M3P also dropped by 10%, so we'll get less trade-in and have to find more money to make the change

I also expect short-term dip, but longer term will recover to a decent SP pretty quick - don't forget that Tesla raised prices a lot in the last couple of years based on supply-chain and logistics increasing cogs. Both of these are now lower, disruptions have eased, cogs is less, the impact on margins will likely not be as bad as some fear and then there's the reported ramping and huge margins on TE that Wall Street has no clue about

Q4ER can't come soon enough...

I have a March 2020 M3LR and asked for a trade-in proposal a few weeks ago.
It has 100K kilometers and they offered 30K, which was not enough for me back then (considering MYP).

 

[OrthoSurg]

Less savage than the -8% premarket from the China price cut.
We were all expecting a price cut in USA too but maybe not of that magnitude. Let’s see how WS punishes the stock today. I hope for another push down to test resistance and come back up recovery at the end of the day.

There is always someone somewhere out there looking out for our CCs

 

[vikings123]

Welps, with tonights model 3/Y price cuts, your 120CC's might still close for a profit!

Haha yeah and you never know what will happen during regular market hours. If you get a chance to close the covered calls at open you should take that opportunity.

 

[juanmedina]

Haha yeah and you never know what will happen during regular market hours. If you get a chance to close the covered calls at open you should take that opportunity.

Yeah we might reserve during the day like with the China cuts.

 

[OrthoSurg]

Haha yeah and you never know what will happen during regular market hours. If you get a chance to close the covered calls at open you should take that opportunity.

That’s my plan

 

[BornToFly]

Aaahh. I thought about selling CC yesterday for next week. Now I wish I had. Market closed Monday. Will have to wait and see what the SP is doing Tuesday. I don't want to lose shares on a hard reversal.

FYI - I paid $51990 for my Y in 2021, and Gross Margins were 30.5% that quarter. Now they have more than 2X the production, which lowers costs and balances some commodity price increases. They also get money from the Govt. for battery pack manufacturing. Gross margins will be fine.

 

[SebastienBonny]

Closed yesterday sold 130 CC (2.20) for 0.83 for a more than 60% daily gain.
Not taking the risk we go up now. Should we go down I'm happy with the profit made.

 

[juanmedina]

Aaahh. I thought about selling CC yesterday for next week. Now I wish I had. Market closed Monday. Will have to wait and see what the SP is doing Tuesday. I don't want to lose shares on a hard reversal.

FYI - I paid $51990 for my Y in 2021, and Gross Margins were 30.5% that quarter. Now they have more than 2X the production, which lowers costs and balances some commodity price increases. They also get money from the Govt. for battery pack manufacturing. Gross margins will be fine.

Is the government battery pack manufacturing incentive already in play?

 

[UltradoomY]

Closed 01/20 CC $125 that I rolled from $120 this week to next - for $0.75 each this morning. Total credit for this week from CC and P's was $4.25 around the world (sold the same amount of Puts as CC)


Glad I closed my $110P's as well.

Starting to feel it again in my bones, this is not TA, listening to the weirdo's on youtube or anything else.
There is just a groove you can feel sometimes and it's coming back to me!

GLTA!

 

[CHGolferJim]

Haha, I have $116 CC to garden today………

 

[SebastienBonny]

Haha, I have $116 CC to garden today………

You might get lucky.