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Wiki Selling TSLA Options - Be the House

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Meh, remember what I said last week about holding on to ITM positions for a bit and let the SP come back to you...? 😂

Anyway, wasn't comfortable with 22X -c130's DITM after last week's monster climb, sitting around hoping for the SP to drop when I'm feeling very bullish on the stock doesn't make sense. Plus the 13x -c150's I had open too...

Anyway, to cut to the chase, had 26c -c150's expire and exercise, giving welcome helping of cash to the account - most of this from trading shares, that I've been selling calls against for months now, pretty sure I'm net +$profitable on the while chain, but it's too complex to work out

Anyhow, closed out the -c130's and -c150's with orders placed before open, that was fine. Managed the first roll OK 22x -c130 -> July 23 -250 straddle, the second one was supposed to be 13x 2/2 -c150 -> 10x 2/3 -180 straddle for this week, but only got the put sell in before the SP started to drop. Left the sell order in place as it kept trying to recover, then you know the story, chasing it down all day, but never came back to me

No big deal, but a bit annoyed with the deceptive pre-market today

I'm wondering if folk took profits on bought calls, some of which went up 2000% on Friday, easy profits to sell those early today, which would then mean a bit of repositioning from the MM's selling shares to stay neutral

Looking for some recovery tomorrow and FOMC to do the right thing Wednesday...
 
During the morning dip, I made a costly mistake by BTC -c175 that I rolled from last week to this week at even money, sending 85% of that trade down the tubes. The CC I closed happened to be the furthest from the money... so dumb. It happened because I didn't fold into the value the "free" cost of the roll; a credit that isn't actually deposited. I manually logged all my trades last year to avoid such a careless move.

Sold -155/+145 BPS to capture some of that but it may be too close for comfort. Posting the gamma chart and options volume seen Friday, I had a good feel we'd be in the 160s, here we are. I'll need to keep an eye on any spike up before Wednesday to close the BPS/ Meanwhile, will look to manage the -c165 and -c170 but am reluctant to roll at this point.
 
Meh, remember what I said last week about holding on to ITM positions for a bit and let the SP come back to you...? 😂

Anyway, wasn't comfortable with 22X -c130's DITM after last week's monster climb, sitting around hoping for the SP to drop when I'm feeling very bullish on the stock doesn't make sense. Plus the 13x -c150's I had open too...

Anyway, to cut to the chase, had 26c -c150's expire and exercise, giving welcome helping of cash to the account - most of this from trading shares, that I've been selling calls against for months now, pretty sure I'm net +$profitable on the while chain, but it's too complex to work out

Anyhow, closed out the -c130's and -c150's with orders placed before open, that was fine. Managed the first roll OK 22x -c130 -> July 23 -250 straddle, the second one was supposed to be 13x 2/2 -c150 -> 10x 2/3 -180 straddle for this week, but only got the put sell in before the SP started to drop. Left the sell order in place as it kept trying to recover, then you know the story, chasing it down all day, but never came back to me

No big deal, but a bit annoyed with the deceptive pre-market today

I'm wondering if folk took profits on bought calls, some of which went up 2000% on Friday, easy profits to sell those early today, which would then mean a bit of repositioning from the MM's selling shares to stay neutral

Looking for some recovery tomorrow and FOMC to do the right thing Wednesday...
Hopium got the best of you - again! I’m positioning exactly the opposite. Trying to roll the 135s weekly until they magically expire worthless or close to that and I can roll up for a credit.
 
Trying to decide if I close my 195 and 200cc for Friday with a small loss now (they were a huge loss three days ago). I can’t tell if today is a small breather in the market before recovering tomorrow and ripping end of week after Fed meeting?… I would hate for them to go ITM by Friday. I’m thinking close now, and open something new in a few days if there is a bounce. Thoughts?
If those were mine, I’d wait until at least Wed AM, seems like there’s a good chance those stay OTM.
 
166.66 is the dividing line of the near inverted symmetrical chart. Keep in mind also that p155, p160, p165 , c170, c175, c180 near peak gamma have significant open interest (second chart). Given this pattern and slightly gamma positive, it may suggest we see some of the same Tuesday with a chance to recover some.

TSLA-TotalGamma-30Jan2023-a.png
TSLA-TotalGamma-30Jan2023.png
 
Doe
166.66 is the dividing line of the near inverted symmetrical chart. Keep in mind also that p155, p160, p165 , c170, c175, c180 near peak gamma have significant open interest (second chart). Given this pattern and slightly gamma positive, it may suggest we see some of the same Tuesday with a chance to recover some.

View attachment 901464 View attachment 901466
Have you found dealer delta positioning as instructive as the gamma? According to this from Tradytics (posted yesterday) which tracks it we should be long TSLA now based on the negative dealer delta exposure (which equals rise in share price):

 
Doe

Have you found dealer delta positioning as instructive as the gamma? According to this from Tradytics (posted yesterday) which tracks it we should be long TSLA now based on the negative dealer delta exposure (which equals rise in share price):


I saw that yesterday, thanks for sharing. Honestly, I am learning (as you saw from my mistakes earlier today). The gamma exposure isn't exactly an indicator of what actions to take, as much as it is highlighting work MM need to consider; delta hedging. I use it as another datapoint when deciding which side I want to play. The dealer delta positioning seems to be good as demonstrated with TSLA but not identical for all tickers as demonstrated with MSFT on yesterdays video, for instance. I like it nonetheless... it's another perspective if were purely trading shares. Right now, I am trying to generate cash so that I can buy back the shares I had to let go of a month ago :mad:
 
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Noob question - I have 50x 2/17 $125c and want convert them into shares (have enough cash to cover).
If I leave it open pass 2/17 and SP is above $125, it will automatically convert my cash into shares at $125, right?
Or earlier... the call is worth about $43.2 right now, so it's got about a dollar and a half or so of extrinsic... whichever comes first (call value + strike < price) or 2/17.

EDIT: I had it wrong... subtract the value from the price. If it's less that the strike, I believe the call sellers shares will get called away. So, it's166.66 - 43.2 (ask) = 123.46 , they may be yours already? Someone confirm this is the right calc pls.
 
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I saw that yesterday, thanks for sharing. Honestly, I am learning (as you saw from my mistakes earlier today). The gamma exposure isn't exactly an indicator of what actions to take, as much as it is highlighting work MM need to consider; delta hedging. I use it as another datapoint when deciding which side I want to play. The dealer delta positioning seems to be good as demonstrated with TSLA but not identical for all tickers as demonstrated with MSFT on yesterdays video, for instance. I like it nonetheless... it's another perspective if were purely trading shares. Right now, I am trying to generate cash so that I can buy back the shares I had to let go of a month ago :mad:

I share your perspective, these are all tools to keep in mind before making decisions. I wish I understood how to use half of the oscillators and data shown on Tradytics!

Would love if they’d have a big BUY or SELL and that’s it for lazy bums like me — lol.
 
Or earlier... the call is worth about $43 right now, so it's got about a dollar or less of extrinsic... whichever comes first (call value + strike < price) (price - call value < strike) or 2/17.

EDIT: I had it wrong... subtract the value from the price. If it's less that the strike, I believe the call sellers shares will get called away. So, it's166.66 - 43.2 (ask) = 123.46 , they may be yours already? Someone confirm this is the right calc pls.

I’m confused - he owns the option so he can choose when to exercise.

I would just sell the calls and buy shares with the proceeds, unless there are tax considerations.