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Wiki Selling TSLA Options - Be the House

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Nice day for day trading, sold 1/20 cc128, 127, 126 multiple times and bought them all back with a gain, making a good thousand bucks on the moves, (that were quite predictable). Tomorrow again maybe, I sold puts 125 on close, expecting the stock to open higher, because 130 seems to be the definite target.*
[Edit] Planning on -cc ATM 1/27 near a top above 130 or @close tomorrow, betting on a lower SP monday. Not too greedy, covered by my most recent purchases. Of course planning to close them at a suitable gain monday/tuesday. I plan not to have any $TSLA options written/bought at 1/25 close. Only the shares, and a bit of cash, just in case.. [/Edit]

*(and NFLX ER did not spoil it. To be honest: made a gamble on those too, selling 2 calls 350 @6.65 and 1 call 330 @10.02, that i can hopefully close at a bit of a gain tomorrow (considering the 2x350 to expire worthless). After hours it would be close, earning some on the 330 alone, NFLX doing 335. I'll try to close that one at any gain tomorrow)
SPY seems to have closed exactly how the recent option-traders get washed out, although SPY max pain is 6 dollars higher. So that will give me a bit of a headache if NFLX thrives on that tomorrow)
 
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125 and 130 are solid, after-market we are up a dollar plus, pre-market is green, will we tag 130 or ride above it to close? I closed my stuff early yesterday , not much to fret over. Smooth moves today @SpeedyEddy , I like the ATM play you have in mind; the expectation that we may drop some Monday. Hmmm, interesting. GLTA!

TSLA-TotalGamma-19Jan2023-a.png
 
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Got the -p125 still running and will close @ appr.80% gain. Will still wait a bit for selling cc ATM 1/27.
(NFLX play worked out well. Like stated closed the -c 330 almost at opening at a $200 gain each (luckily!) and just to be sure on this play closed the -c 350 at almost $500 so won 900 dollar on this bet. Did not expect the positive result they published, luckily the EPS was not that good.)

[Edit] Closed 16:14 (CET so 10:14 EST)at 90% gain [/Edit]
 
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Rolled 3 ITM CC 1/20$120 to 2/3$125 for a $1.98 credit and $5 strike improvement on 300 $116 buy-write shares. These will be my only open CC until next Thursday post-ER once today’s $142 contracts expire.
  • B-W projected return if 2/3 assign = 33% for 37 days, although I intend to roll indefinitely and adjust strike price tactically.
  • If this level of ROI continues over next several months, I’ll shift CC strategy more towards B-W (premiums = 5x-10x +15% OTM, so OTM CC can become more conservative while still meeting income goals).
 
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Today the TSLA climb was too steep IMHO, so I just went in for a first round of -cc 130 1/27 against a lot of my shares, hoping we might make a little dive first (where I like to day-trade out of the position, but no problem if that isn't becoming true, then I will keep 'm over the weekend) , SP coming back up heavily, overshooting 130 temporarily once again, placing my definite little -cc ATM for over the weekend, to close @130. Just a thought for me, no advice, because anything can happen (while writing SP even went $1 higher, to prove me wrong on 1 part of the assumptions)
 
Repeated heaviest support below SP 130 undermines my plan, so I decided to get myself safe to go on a totally worry-free evening, out to a diner and enjoy a local blues-festival. Closed most of my 1/27 -cc 130, to hold only 2 for the monday/tuesday dip, still earning 255 dollars, so it was a good trading day, with a $1120 in the pocket. Calling this a non-daytrading-day definitely. (gaining generally on yesterday's opened-trades)
 
How are you playing the upcoming earnings? Has WS analysts adjusted earnings estimates on the lower P&D numbers? Or are the odds of a slight miss or slight beat larger than the odds of a large beat of the consensus? Anyone selling close CCs, buying protective puts before? Anybody buying calls because they are bullish?

Everybody staying out like @adiggs?
I’m still holding 130/131/132 straddle/strangles for both today and 1/27. I wasn’t planning for these to be ATM this afternoon, but it’s ok, just means that I need to watch them closely near market close. I overslept and missed the 1st hour of trading. Oops. I’ll probably roll today’s to 1/27 as well, maybe targeting 132-135. Still not sure whether to close before earnings or hold through the IV crush, but will probably hold if SP is below my strikes. Edit: Options action suggests SP will deadstick land at $130+/-0.10 today.

On another note, tried timing a few more BPS/BCS (IC). Learned again that they are very stressful, very directionality-dependent on SP movement, and very profitable (when timed correctly). I managed to earn ~5% on a 122/124 BPS in just one day. Furthermore, trading spreads before Thursday is just too risky, because theta decay is greatest overnight Thursday-Friday. GLTA and stay safe.
 
How are you playing the upcoming earnings? Has WS analysts adjusted earnings estimates on the lower P&D numbers? Or are the odds of a slight miss or slight beat larger than the odds of a large beat of the consensus? Anyone selling close CCs, buying protective puts before? Anybody buying calls because they are bullish?

Everybody staying out like @adiggs?
I am selling CCs at least 25% out and going up from there.

Have calls already bought. (150).

Have a couple of BPS in the mix. I am experimenting with selling them ITM. For example sold a 140/125 for next week for 8. Max loss is 8. My experience is that in the past when I was wrong about direction of stock, it frequently blew through my strike price anyway. The allure of risking a million dollar hit for a high probability 10k score just is not there for me.

I do fear the SP exploding up from here more than it collapsing, but all that means is I have PTSD in both directions.
 
How are you playing the upcoming earnings? Has WS analysts adjusted earnings estimates on the lower P&D numbers? Or are the odds of a slight miss or slight beat larger than the odds of a large beat of the consensus? Anyone selling close CCs, buying protective puts before? Anybody buying calls because they are bullish?

Everybody staying out like @adiggs?
Definitely staying out. I stay out of P&D and ER.

But may try a small spread on Thursday after the ER. Right in the morning IV is still not fully crushed and market reaction is known - so risk is lower.

I wonder @Yoona, do you know what the % change between Thursday open and Friday close on ER week is ? I think except for may be one or two quarters, all ERs have been on Wednesdays.
 
How are you playing the upcoming earnings? Has WS analysts adjusted earnings estimates on the lower P&D numbers? Or are the odds of a slight miss or slight beat larger than the odds of a large beat of the consensus? Anyone selling close CCs, buying protective puts before? Anybody buying calls because they are bullish?

Everybody staying out like @adiggs?
For now just opened a 150 CC for next Friday.
If we go down before earnings could add a -p as well (maybe combined with a lower +p).
 
I am selling CCs at least 25% out and going up from there.

Have calls already bought. (150).

Have a couple of BPS in the mix. I am experimenting with selling them ITM. For example sold a 140/125 for next week for 8. Max loss is 8. My experience is that in the past when I was wrong about direction of stock, it frequently blew through my strike price anyway. The allure of risking a million dollar hit for a high probability 10k score just is not there for me.

I do fear the SP exploding up from here more than it collapsing, but all that means is I have PTSD in both directions.

I just copied this BPS - so fun doing stuff like this again.

STO -$140 / +$125 BPS - $8.20 each

Small position but gets the juices flowing!
 
How are you playing the upcoming earnings? Has WS analysts adjusted earnings estimates on the lower P&D numbers? Or are the odds of a slight miss or slight beat larger than the odds of a large beat of the consensus? Anyone selling close CCs, buying protective puts before? Anybody buying calls because they are bullish?

Everybody staying out like @adiggs?

mostly sitting out. I have a 1/27 -126p/-135c short-strangle, just to gamble with, but waiting until after earnings. I'm expecting a MMD thursday morning, even if earnings are good. Will sell a ITM -p (probably for 2/03) if that happens. Which I guess shows a sentiment of not wanting to be in front of the steamroller collecting pennies this time around.