Wiki Selling TSLA Options - Be the House

[gabeincal]

I guess I'm putting on my put selling hat soon as I'm short 135 calls against all my shares this week. Will wait until Friday and see if I can roll to 140s 2 weeks out, and if not, I'll probably let them exercise these 135s if they need be.

I'll also be able to take the losses from the shares against short-term cap gains for the next couple years perhaps...

During 2021, most of my sales were puts and I thoroughly enjoyed it (I'm doing this professionally, ie. it pays my family's living). Not a huge fan of selling calls, it's a different kind of stress. But then I was holding 1165p's for my entire portfolio and the dip started, so......

 

[intelligator]

Yesterday to today, not much changed from a gamma exposure perspective. c140, c145 edged up some, c150 slightly .005 to .020 (look at the y axis on both charts to notice). c160, c170 remained the same. A small increase at p140, that's it. The 150 wall may keep us +/- 3 tomorrow from where we are. What to do about -c160, -c162.5, -c165 cc's ... depends how the day goes I suppose. What I did notice today though is that during market hours, the afternoon specifically, the -c160 was worth less than it was in the morning hours, by .20 ... something like 1.60 around noon, maybe $143 and 1.41 at close, $144 or so. Is that due to IV ??? How could delta change so rapidly?

 

[JustMe]

Yesterday to today, not much changed from a gamma exposure perspective. c140, c145 edged up some, c150 slightly .005 to .020 (look at the y axis on both charts to notice). c160, c170 remained the same. A small increase at p140, that's it. The 150 wall may keep us +/- 3 tomorrow from where we are. What to do about -c160, -c162.5, -c165 cc's ... depends how the day goes I suppose. What I did notice today though is that during market hours, the afternoon specifically, the -c160 was worth less than it was in the morning hours, by .20 ... something like 1.60 around noon, maybe $143 and 1.41 at close, $144 or so. Is that due to IV ??? How could delta change so rapidly?

View attachment 899883 View attachment 899884

IV was indeed falling a bit this afternoon, quite the opposite of the day before the previous ER

 

[BornToFly]

I'm probably going to have to roll my 155CC for this Friday. Maybe the 160CCs as well. If Moody upgrades Tesla to Investment grade, we might get steam rolled....

I was asked to help with a big surgery on Friday, so my ability to manage is going to be limited. I might have to decide what I'm going to do tomorrow.

 

[bingoz]

I'm probably going to have to roll my 155CC for this Friday. Maybe the 160CCs as well. If Moody upgrades Tesla to Investment grade, we might get steam rolled....

I was asked to help with a big surgery on Friday, so my ability to manage is going to be limited. I might have to decide what I'm going to do tomorrow.

Do you know when Moody is supposed to give another update?

 

[BornToFly]

What is everyone's plan for rolling CCs that are currently OTM. Roll as soon as they go ITM, or wait until they are $5 ITM in case the SP comes back down?

 

[BornToFly]

Do you know when Moody is supposed to give another update?

On Twitter it sounded like the last one was a year ago, so it could be any day...., or months (if their friends need more time)...?

 

[MP3Mike]

Do you know when Moody is supposed to give another update?

Sometime after Tesla expands their product offerings. So my guess would be after the Cybertruck achieves volume production.

 

[gabeincal]

What is everyone's plan for rolling CCs that are currently OTM. Roll as soon as they go ITM, or wait until they are $5 ITM in case the SP comes back down?

I like to wait. Then roll out even for a week or two for extra profit. Usually gets me out of trouble, especially last year...

 

[BornToFly]

I like to wait. Then roll out even for a week or two for extra profit. Usually gets me out of trouble, especially last year...

I don't want to lose the shares (and get a tax bill), so I plan to roll up and out for a small debit, and then sell far OTM CC to cover the debit.

 

[MikeC]

I'm probably going to have to roll my 155CC for this Friday. Maybe the 160CCs as well. If Moody upgrades Tesla to Investment grade, we might get steam rolled....

I was asked to help with a big surgery on Friday, so my ability to manage is going to be limited. I might have to decide what I'm going to do tomorrow.

I’m expecting an initial surge at open but the million dollar question is whether it will be sustained. My general thought is it will flatten out Thursday afternoon and Friday to kill IV and call buyers. I have a few 140-150 CC that I will roll at that point if I can get to a higher strike.

If we see a strong, sustained rally, I will close them out and sell recently bought LEAPS 1:1 along with them. I have no interest in rolling out weeks to months to raise the strike a few dollars higher, losing much more time value relative to the LEAPS.

 

[GrmMastrDoobie]

Ok back to this for a minute:

So based on this, in all of 2022 you wouldn't have lost any shares if all of your weekly calls were sold at a price at least 16% higher than the current price? And even then it wouldn't have gotten that close unless you perfectly timed the lowest price? Already in 2023 I see that the low on Friday the 6th was 101.81 and the high on January 13th was 122.63 for a spread of 20.45%. What percentage differences between the highs and lows were we getting during the notorious Hertz deal?

Also on that chart shouldn't the 7 DTE number be a higher percentage than than the 5 days to expiry number, or at least the same? I'm just not sure if I'm interpreting it correctly. What's the column with $ sign denoting?

 

[SebastienBonny]

What is everyone's plan for rolling CCs that are currently OTM. Roll as soon as they go ITM, or wait until they are $5 ITM in case the SP comes back down?

I would like to be able to wait until 5 dollar ITM (got 150 CC), but I'm starting to think I'll not get the chance and we may open higher.
Frankfurt stock market may be a slight indication in 5 minutes...

I'm guessing the value of 150 CC won't be too much higher if we open at 155 due to IV crush?
Remaining time value should be rather low and then of course you have the intrinsic.

 

[traxila]

Deleveraging, taking losses and selling long held shares did save my account.

But it sure is a bummer not seeing the same magnitude of gains on the way back up as the losses I saw on the way down.

Will stay steady and keep working at it…

 

[Jim Holder]

https://twitter.com/x/status/1618562454426112001

Looks like if there isn’t too much profit-taking around this price point we may hover around 140-150 and continue stairs up.

 

[juanmedina]

What is everyone's plan for rolling CCs that are currently OTM. Roll as soon as they go ITM, or wait until they are $5 ITM in case the SP comes back down?

Many suggest to roll before CCs get ITM or ATM. I have a few $157.5cc, most of my shares are in $162.5 and some $165. I might manage the $157.5 but the other ones I hope they will expire worthless. I will close them early if I get the chance and I think they will profit taking during trading hours at some point today or tomorrow. $157.5 are 15% OTM from the $136ish open and the $162.5's about 20%.

 

[scubastevo80]

Likely sitting on my $150 CCs until Friday. I want to see how today plays out, and I think we have a red day Friday from profit taking. I could be wrong, but at this point, I think TSLA is a bit overbought and I'd be happy to sit on the sidelines briefly until the price reverts a bit.

 

[Max Plaid]

I have a sneaking suspicion that I may need to roll my -c130's

 

[SebastienBonny]

What's happening here, stock price is going up very fast. 10% up now premarket.

 

[gabeincal]

I have a sneaking suspicion that I may need to roll my -c130's

What’s the target?