Wiki Selling TSLA Options - Be the House

[CHGolferJim]

To derisk a little and take some profits on CCs, all in IRAs:

• To expire or assign today: one buy-write (10Feb$190, $116 cost), and a small tranche of trading shares (10Feb$210, $227 cost)
• Rolled 2nd B-W (10Feb$190 —> 17Feb$195 cost, $1.50 debit to gain $5)
• Rolled 17Feb$197.50 —> 3Mar$205 ($1.74 credit, on core shares to cost, to expire/assign/roll)

 

[BornToFly]

Yesterday I thought about selling Jan 2024 400 strike CCs and buying them back for a profit on a pullback. I wish I had done it. Would have made 10 weeks worth of income in one day.

I have an order in to sell 260 strike CC for next week at 0.3 (they were over 0.5 yesterday). If they don't hit I will see after CPI Tuesday morning.

 

[Max Plaid]

Closed out most of my calls 45x 3/3 -c300 +50%, 15x 2/17 -c240 +70%, 10x 2/17 -c210 +65%

Maybe leaving money on the table there, but have been chasing calls up since the the crazy run started, so decided to take the profits and then see how things pan-out... will be looking to write a bit safer from there, although still have 11x -c250's open

Now I can stress about my 15x -p215's for next week instead... what a game!

 

[dropgems]

what we looking at is one of the most bearish candlestick patterns there is: gravestone doji yesterday complimented by a gap down today - island reversal. However, given the fresh high on daily RSI I mentioned yesterday as well as option flow not supporting a flush, I'm still leaning toward another high, even if just barely exceeding yesterday high, or maybe a double top. Nothing to be worried about yet. 191 is still the number I'm watching today.

You still watching 191?

 

[intelligator]

BTC 2/17 -C240 for .50 (sold at 2.50)

Now considering an oder to write a 2/17 -172.50/+162.50 BPS for 1.00 just below the rolled -c177.5 I placed there Wednesday which I feel may move again today if I can find a credit somewhere with a strike improvement as well. I want to avoid going too far out to otherwise never expire and lose utility of the shares to write CC meanwhile.

 

[OrthoSurg]

You still watching 191?

Interesting we bounced just above that at 192.89

 

[Max Plaid]

I must admit that my weekend would be a lot more pleasant, psychologically at least, if this would just move up a couple of % and close above 200...

So annoying that had I just left my -c195's in place then I'd be buying them back for pennies today - but you just don't know this in advance, look at how it has gone every day almost for the last month, regardless of the macro up, up, then up some more. The moment I decide to bias more to the put side, boom, down it goes; Just bloody typical

Yet another ITM challenge to keep me busy,I suppose I should be happy that I did sell quite a lot of calls yesterday, some consolation. It can go to the moon now as far as I'm concerned, but probably won't... needs a cold CPI print on Tuesday

 

[john tanglewoo]

Sold 4 batches of calls yesterday as the stock price was rising, first time I've sold calls in months.....but to see the stock go up another 20% by mid-March would be the largest gain in its history, so I took the chance. Those calls are up 50% today but I'm going to hold them for longer.

25x -c245 March 10 @ 4.70
25x -c245 March 10 @ 5.75
20x -c245 March 10 @ 6.15
13x -c245 March 10 @ 7.00

Got the 7 as stock price was cresting 211. Will update when these are managed.

 

[SebastienBonny]

Sold 4 batches of calls yesterday as the stock price was rising, first time I've sold calls in months.....but to see the stock go up another 20% by mid-March would be the largest gain in its history, so I took the chance. Those calls are up 50% today but I'm going to hold them for longer.

25x -c245 March 10 @ 4.70
25x -c245 March 10 @ 5.75
20x -c245 March 10 @ 6.15
13x -c245 March 10 @ 7.00

Got the 7 as stock price was cresting 211. Will update when these are managed.

That’s a shitload of premium
Good luck!

 

[dl003]

I think what could be developing is an ending diagonal wave 5, similar to what SEDG did in December. It means one more high, either failing at the top of the wedge or after a false breakout.
View attachment 904028

Remember this chart? This is it now. Feel old yet?

All joking aside. I don't think TSLA will follow the SEDG chart on the right exactly. More specifically, I think the rebound next week and the week after will go much higher, to 213 at least, before really correcting.

 

[adiggs]

Starting to get back in. Opening some 170/150 put spreads for next week, about .80 credit.

Continuing not to open any cc. If I were guessing, at the moment I don't see opening cc until we're more like 230 and then I'd be using a 250+ strike on a 1/2 to 2 week duration position.


For historical reasons I've mentioned before, 230(ish) is where we get back to the bottom of what I consider a semi-reasonable price for the company as it exists today.

EDIT: as a result I'm leery of opening any cc at a share price below 230 - I won't be surprised to see a 1 week move to that level or above, and I'd like to fully benefit from that move when it comes.

 

[gabeincal]

Rolled Feb 17 -23 x 135c to Mar 17 -23 x 135c for $1.9 credit. Giving things time to settle...

 

[juanmedina]

Yesterday I thought about selling Jan 2024 400 strike CCs and buying them back for a profit on a pullback. I wish I had done it. Would have made 10 weeks worth of income in one day.

I have an order in to sell 260 strike CC for next week at 0.3 (they were over 0.5 yesterday). If they don't hit I will see after CPI Tuesday morning.

I was going to sell a bunch of Jan 2024 $280cc for $30-32 but I didn't and they are already down $8 and I only sold a few through the accounts. I was telling my wife that maybe need start trusting my feelings because when I start to fill uneasy it usually dumps. When the stock was AH I really wanted to dump everything but like usual we just said lets wait a little longer . I did sell some a more stock on 11/04 through the day but nothing meaningful. I have a fear of committing to my trades and trusting my judgement. I sold more $250's yesterday at $1.5 and $245-235's at open today so I guess I can't complain.

 

[jim0266]

I was going to sell a bunch of Jan 2024 $280cc for $30-32 but I didn't and they are already down $8 and I only sold a few through the accounts. I was telling my wife that maybe need start trusting my feelings because when I start to fill uneasy it usually dumps. When the stock was AH I really wanted to dump everything but like usual we just said lets wait a little longer . I did sell some a more stock on 11/04 through the day but nothing meaningful. I have a fear of committing to my trades and trusting my judgement. I sold more $250's yesterday at $1.5 and $245-235's at open today so I guess I can't complain.


View attachment 905876View attachment 905878

What is the reason for selling so far out versus 60-90 days out? My fear would be getting trapped at a SP this low if something crazy happens. Thanks for helping me learn and understand your thought process.

 

[Krugerrand]

Remember this chart? This is it now. Feel old yet?

All joking aside. I don't think TSLA will follow the SEDG chart on the right exactly. More specifically, I think the rebound next week and the week after will go much higher, to 213 at least, before really correcting.

I’m confused. I thought you said that if TSLA held 191 today (which it did), then that meant TSLA bullish for two months. But now you seem to be saying in a week or two - not bullish but rather the stairway down for the retracement you first called for at 181 that didn’t happen.

 

[dl003]

I’m confused. I thought you said that if TSLA held 191 today (which it did), then that meant TSLA bullish for two months. But now you seem to be saying in a week or two - not bullish but rather the stairway down for the retracement you first called for at 181 that didn’t happen.

When I say bullish, it doesnt mean the stock will keep going up. It depends where it is on the chart. As TSLA is entering a consolidation phase, bullish means I dont expect a retracement deeper than 38.1% and its going to take a market correction to bring it down to the 162.5 area. The overall sentiment is going to be BTD and Q1 ER is going to be better than expected. Initially I was targeting 140 and under. Now its 162.5 and above. A correction can be bullish, neutral or bearish.

BTW, the change in EV credit requirement happened after my 180 call so Im happy to be wrong here. IMO, 180 should have been the top because the ER didnt reveal anything we didnt know. The $7500 is the game changer, though. Something fundamental has changed.

 

[juanmedina]

What is the reason for selling so far out versus 60-90 days out? My fear would be getting trapped at a SP this low if something crazy happens. Thanks for helping me learn and understand your thought process.

I sold those covered calls because we already went up a bunch really fast and the premiums were decent. Those contracts would give me $60 a week and if I lose those shares at $310 by the end of the year I would be happy. I am not sure what everyone price targets are for the end of the year but anything over $250 would be amazing IMO.

 

[Jim Holder]

When I say bullish, it doesnt mean the stock will keep going up. It depends where it is on the chart. As TSLA is entering a consolidation phase, bullish means I dont expect a retracement deeper than 38.1% and its going to take a market correction to bring it down to the 162.5 area. The overall sentiment is going to be BTD and Q1 ER is going to be better than expected. Initially I was targeting 140 and under. Now its 162.5 and above. A correction can be bullish, neutral or bearish.

Since we closed today over 191, looks like we may head back to 213 area and then likely retrace down again a bit deeper to the 162.50 area as you say. Are you seeing the same?

Also how long do we expect to sit in the retracement usually?

Thanks again for educating and illuminating us!

 

[dl003]

Since we closed today over 191, looks like we may head back to 213 area and then likely retrace down again a bit deeper to the 162.50 area as you say. Are you seeing the same?

Also how long do we expect to sit in the retracement usually?

Thanks again for educating and illuminating us!

We have til March 31st to consolidate. Once P&D is out its going to get resolved one way or the other. I do expect us to enter late March closer to 213 than to 162.5, provided macros cooperate. But you know, we have MIC data coming out every week so that can speed up or slow down the correction. Right now I can only say what I think will be the monthly bottom. By the look of it, SPY is going to correct hard once its made another high above 420 so I think that will be the trigger.

 

[Krugerrand]

When I say bullish, it doesnt mean the stock will keep going up. It depends where it is on the chart. As TSLA is entering a consolidation phase, bullish means I dont expect a retracement deeper than 38.1% and its going to take a market correction to bring it down to the 162.5 area. The overall sentiment is going to be BTD and Q1 ER is going to be better than expected. Initially I was targeting 140 and under. Now its 162.5 and above. A correction can be bullish, neutral or bearish.

BTW, the change in EV credit requirement happened after my 180 call so Im happy to be wrong here. IMO, 180 should have been the top because the ER didnt reveal anything we didnt know. The $7500 is the game changer, though. Something fundamental has changed.

Um. Ok.

I leave you to your money making options venture then.