Wiki Selling TSLA Options - Be the House

[CHGolferJim]

Agree. I was also thinking of waiting until Thu/Fri for my “core CC”, but might do half today if price holds just in case of an IV and SP drop towards Max-Pain ($138) after ER.

To sorta half-way play the possibility of an SP drop or rise tomorrow, today sold 1/3 of my usual weekly contracts: 3Feb$160 @ $3.23. May use these proceeds on Fri/Mon to roll 3Feb$125 buy-write out to a better strike improvement than a simple roll could accomplish.

 

[mrmage]

Wrote Jan27 160c for 1.83 @ SP ~145.5 Should have been 1.88, but rushed and went long before realizing my mistake and lost a few cents to correct.

Going to play this two ways: if SP pulls back, I'll close it before end of day. If SP goes up, I'll see what happens after earnings. Bought my trading shares at $121, so I'll live with the gains if they get assigned. Mantra for this year is, don't be too greedy. It's been harder to do than it sounds...

Edit: Also considered strike 150, but decided not to in the unlikely case that earnings blows everyone away.

 

[traxila]

Clipped 2.55 off some of my 150 C by rolling to 160C. More than I paid for them. My CCs still protected from insane rally which I am certainly rooting for.

 

[Max Plaid]

MP moved up to 138 today... looking at the open interest, it's hard to imagine the Hedgies letting it go above 150 this week, even above 140 they start to lose bigly, going to be interesting whatever happens

I wonder if those are uncle Leo's p160's

 

[intelligator]

Bought my trading shares at $121, so I'll live with the gains if they get assigned.

Isn't risk of assignment tomorrow night? Meaning, tonight's announcement is at 530 , isn't that after when that possibly ends? Otherwise, i better get rolling or closing.

EDIT: May as well save a post and write this here. Slightly more puts than calls as of 3PM ... options volume (where contracts > 500)

 

[traxila]

MP moved up to 138 today... looking at the open interest, it's hard to imagine the Hedgies letting it go above 150 this week, even above 140 they start to lose bigly, going to be interesting whatever happens

View attachment 899747

I wonder if those are uncle Leo's p160's

View attachment 899753

Remember, Hedgies / MMs don't always rule the roost. Only almost always. We have seen them get their clocks cleaned with TSLA.

 

[Jim Holder]

I STO 58x -C170 for 1/27 (Friday). Option chain says 92% chance OTM. Got 0.73 ($4,234).

We have resistance at 149.96, 156.33, 160.03 and 166.95.

Is 170 strike crazy risky (+$24 move) between now and Friday (2 days)?

 

[SebastienBonny]

I STO 58x -C @ 170 for 1/27 (Friday). Option chain says 92% chance OTM. Got 0.73 ($4,234).

We have resistance at 149.96, 156.33, 160.03.

Is 170 crazy (+$24 move) between now and Friday (2 days)?

In my mind yes.
We are already up huge since the lows.
Another 20% seems unlikely in two days.

BUT last months we unusual as well, so who will tell…?

 

[Jim Holder]

In my mind yes.
We are already up huge since the lows.
Another 20% seems unlikely in two days.

Yes as in crazy, or yes as in safe?

 

[SebastienBonny]

Yes as in crazy, or yes as in safe?

I would think 170 is safe for friday, but who knows what will be told on the call…

 

[Jim Holder]

Anyone know if OptionCalc factors in IV and IV crush automatically?

Here’s a link to the 1/27/23 -C170:

TSLA Covered Call calculator

TSLA Covered Call Calculator shows projected profit and loss over time. The covered call involves writing a call option contract while holding an equivalent number of shares of the underlying stock. It is also commonly referred to as a \

opcalc.com

It shows green tomorrow, even if the price stays the same (145). That seems a bit odd, though perhaps that factors in IV crush?

 

[mrmage]

Isn't risk of assignment tomorrow night? Meaning, tonight's announcement is at 530 , isn't that after when that possibly ends? Otherwise, i better get rolling or closing.

EDIT: May as well save a post and write this here. Slightly more puts than calls as of 3PM ... options volume (where contracts > 500)

View attachment 899760

Not following the logic, so maybe I'm misunderstanding the question.

Theoretically, assignment can occur anytime the option holder (the buyer of the options) wants, but in practice it usually happens after expiration which is Friday (two days from now). Most option holders don't assign early because they'd lose whatever time value is remaining on the options.

 

[Cherry Wine]

Anyone know if OptionCalc factors in IV and IV crush automatically?

Here’s a link to the 1/27/23 -C170:

TSLA Covered Call calculator

TSLA Covered Call Calculator shows projected profit and loss over time. The covered call involves writing a call option contract while holding an equivalent number of shares of the underlying stock. It is also commonly referred to as a \

opcalc.com

It shows green tomorrow, even if the price stays the same (145). That seems a bit odd, though perhaps that factors in IV crush?

View attachment 899767

I highly doubt it calculates IV crush without the option to input a volatility date.

 

[mongo]

Anyone know if OptionCalc factors in IV and IV crush automatically?

Here’s a link to the 1/27/23 -C170:

TSLA Covered Call calculator

TSLA Covered Call Calculator shows projected profit and loss over time. The covered call involves writing a call option contract while holding an equivalent number of shares of the underlying stock. It is also commonly referred to as a \

opcalc.com

It shows green tomorrow, even if the price stays the same (145). That seems a bit odd, though perhaps that factors in IV crush?

View attachment 899767

You need to adjust IV yourself on the page.
Not surprising a call would lose value if time passes and the stock price stays the same (all Theta, no Selta). Which means green if you wrote it.

 

[Max Plaid]

Remember, Hedgies / MMs don't always rule the roost. Only almost always. We have seen them get their clocks cleaned with TSLA.

Sure, I'm not counting on it, but there's a LOT of money to won and lost there and if anyone has an outsized stake they'll be keen to take benefit if possible

 

[mrmage]

In case I want to try some AH action, is there a better way to check for the ER summary besides refreshing the Telsa IR page for the next hour?

Edit: That was fast. NM...

 

[SebastienBonny]

Lol. Flat AH for now?
okay now green.

 

[Max Plaid]

Wow, can't ever recall $TSLA being flat after an ER slide-deck release... numbers look "ok", nothing spectacular, nothing bad, although FCF is about $3B lower than many of us expected

 

[doddiozil]

Seems no one is talking about the 4.3 billion purchase of investments?

 

[SebastienBonny]

Wow, can't ever recall $TSLA being flat after an ER slide-deck release... numbers look "ok", nothing spectacular, nothing bad, although FCF is about $3B lower than many of us expected

I say glad I kept my 150CC, BUT, what happens at the call…