Wiki Selling TSLA Options - Be the House

[Jim Holder]

Where has Mauro been. He's been MIA since that 2/21 post.

I also wonder same. Dunno.

 

[dc_h]

I also wonder same. Dunno.

Reminder, he's a good chartist, but we're taking advise and planning a financial future on a guy who posts on twitter between his college courses. The scary part of his chart is that it seems to imply there could be more bear ahead, before we bull upwards. If we go to 145 before we go back up, I'm going to be losing a lot of sleep.

 

[BornToFly]

I know there were more bank concerns this morning, but I'm still surprised the market didn't rally on great PPI numbers today. This all should bode well for the FOMC meeting next week.

 

[CHGolferJim]

I know there were more bank concerns this morning, but I'm still surprised the market didn't rally on great PPI numbers today. This all should bode well for the FOMC meeting next week.

I think there is more concern and uncertainty about the banks in the near-term, we’ll do the Fed dance next week.

 

[Jim Holder]

Anyone considering STO -P $160-$165 for 3/24 and 3/31?

 

[Max Plaid]

IV looking quite

I know there were more bank concerns this morning, but I'm still surprised the market didn't rally on great PPI numbers today. This all should bode well for the FOMC meeting next week.

Didn't even realise it was PPI today, now I look it came in very cold...

Trouble is that there's some kind of "economic indicator" every single day it seems, hard to keep up!

 

[Max Plaid]

Anyone considering STO -P $160-$165 for 3/24 and 3/31?

Depends what happens with this week's 20x -p175's, if I were writing as of now then 3/24 -p170's look enticing

I'm thinking along the lines the that the FED need to slow down, so expecting markets to rally after the FOMC, so will write puts before hand but not calls until afterwards

But need to get through this week first...

 

[Right_Said_Fred]

At 177 I rolled 10 x p190 and 10 p165 from 3/17 to 3/24, for net credits of $2.20 and $2.40.

 

[UltradoomY]

Anyone else considering buying some yolo CS leaps?

I loaded some 03/31 $2.50 Calls this morning - average price $0.15 each

Now sitting at $0.35 each - going to unload my cost basis and keep the rest for the free ride.

Figured this was "too big to fail" for the ECB - gamble was less than $5k total but now sitting at decent sushi money.


For TSLA - set a STO collar for next week that I am waiting for it to hit - STO $175P and BTO $185C - looking for a $0.25 credit each - it's close now.

Will re-try tomorrow if they don't hit today - I think we are close to max pain bound for this week but next week is open for a bounce up, depending on the FED.
Will look to de-leverage prior to the FED meeting as I see that as a strong up/down day for sure.

Edit - the Collars filled - for a price improvement $0.30 each

 

[gabeincal]

Still don’t trust the ralley, but -C140 and 145 giving me a headache of course. Testing my diamond hands on those. Think it is is far too early to have these out , after CPI. So thinking what to do next. Or not to do a thing this week.

You and I are in the same boat, fellow traveller. I'm holding onto -23 x 4/21 135c!

 

[phantasms]

Haha well played! I dipped my toes in but, as usual, wish I bought more.

 

[dl003]

Was out for a, ahem, "business lunch"

Did you do it, the afternoon delight? Only reason someone would say *"business lunch"*.

PPI came in cold, so cold, in fact, that it sparked some recession fear and also Credit Suisse is now under similar stress to SVB. The way Fed Fund Rate future looking right now, it seems 25 bps is widely expected so really no more positive surprise next week aside from no hike at all / rate cut - impossible.

Yesterday flow was very bullish for TSLA so I thought we're gonna rally for 1-2 days. It did close at HOD, which normally has been the signal for such a move. Yet, macro headwind this morning was too strong. We are at a junction where it is equally likely to go down to 172 as it is to go up to 197.

 

[Max Plaid]

Did you do it, the afternoon delight? Only reason someone would say *"business lunch"*.

PPI came in cold, so cold, in fact, that it sparked some recession fear and also Credit Suisse is now under similar stress to SVB. The way Fed Fund Rate future looking right now, it seems 25 bps is widely expected so really no more positive surprise next week aside from no hike at all / rate cut - impossible.

Yesterday flow was very bullish for TSLA so I thought we're gonna rally for 1-2 days. It did close at HOD, which normally has been the signal for such a move. Yet, macro headwind this morning was too strong. We are at a junction where it is equally likely to go down to 172 as it is to go up to 197.

"the afternoon delight", ha ha, had to Google that, never heard the phase before, no, that was this morning before my first meeting and the lunch really was a lunch with colleagues, although I was driving so took it steady on the booze...

I think the TW OPEX will keep things in the channel this week - a Friday pin @180 would be very profitable indeed for "them", unless things shift in the next couple of days...

Would also be a big surprise if the FED decided to flex and go with 0.5% anyway, I think that would precipitate a huge market crash, which is maybe what they want, who knows?

 

[EVNow]

Yesterday flow was very bullish for TSLA so I thought we're gonna rally for 1-2 days. It did close at HOD, which normally has been the signal for such a move. Yet, macro headwind this morning was too strong. We are at a junction where it is equally likely to go down to 172 as it is to go up to 197.

Definitely today TSLA underperformed the market. Even by its usual 2x Beta standards - it was usually lower than 2x Nasdaq.

Not sure what the reason was.

 

[BornToFly]

Need advice -

I have to put money down for a large purchase next week, which I have, but it is protecting my margin from a large SP drop. The money I had coming in from the Honda sale is going to be another 4-6 weeks. I'm trying to figure out how I can safely increase my margin, without losing a lot of money.

Option 1) Buy Puts, but that will probably waste money.

Option 2) Risk it since I will have enough margin for a SP drop to 120 (assuming Fidelity doesn't increase the Margin for shares from 50% to 60%)

Option 3) Find a way to hedge. I could sell 5000 shares, and buy 50 Jan 2024 380 strike calls. I think that if the SP goes up or down, the movements will be pretty well matched (Delta 0.12), so that I can convert back in a month to shares. (If the SP drops, the calls will be worth less, but I will be buying the shares back for less. If the SP rises, the Calls will have a profit I can use to buy back the shares at the higher price).

Anyone NOT like Option 3? IT seems like the best option to me. Do I have the hedge correct?

Edit - My math is wrong. I would need 500 calls I think... That gets expensive.

 

[Jim Holder]

Need advice -

I have to put money down for a large purchase next week, which I have, but it is protecting my margin from a large SP drop. The money I had coming in from the Honda sale is going to be another 4-6 weeks. I'm trying to figure out how I can safely increase my margin, without losing a lot of money.

Option 1) Buy Puts, but that will probably waste money.

Option 2) Risk it since I will have enough margin for a SP drop to 120 (assuming Fidelity doesn't increase the Margin for shares from 50% to 60%)

Option 3) Find a way to hedge. I could sell 5000 shares, and buy 50 Jan 2024 380 strike calls. I think that if the SP goes up or down, the movements will be pretty well matched (Delta 0.12), so that I can convert back in a month to shares. (If the SP drops, the calls will be worth less, but I will be buying the shares back for less. If the SP rises, the Calls will have a profit I can use to buy back the shares at the higher price).

Anyone NOT like Option 3? IT seems like the best option to me.

What about taking a loan not connected to shares, like a HELOC or LOC. Then you’re not at the peril of the market.

 

[BornToFly]

What about taking a loan not connected to shares, like a HELOC or LOC. Then you’re not at the peril of the market.

I am trying to get a HELOC, but I'm having to close my old one first, and now it has to be recorded through the county, so it probably won't be ready in time. ...

 

[MikeC]

Need advice -

I have to put money down for a large purchase next week, which I have, but it is protecting my margin from a large SP drop. The money I had coming in from the Honda sale is going to be another 4-6 weeks. I'm trying to figure out how I can safely increase my margin, without losing a lot of money.

Option 1) Buy Puts, but that will probably waste money.

Option 2) Risk it since I will have enough margin for a SP drop to 120 (assuming Fidelity doesn't increase the Margin for shares from 50% to 60%)

Option 3) Find a way to hedge. I could sell 5000 shares, and buy 50 Jan 2024 380 strike calls. I think that if the SP goes up or down, the movements will be pretty well matched (Delta 0.12), so that I can convert back in a month to shares. (If the SP drops, the calls will be worth less, but I will be buying the shares back for less. If the SP rises, the Calls will have a profit I can use to buy back the shares at the higher price).

Anyone NOT like Option 3? IT seems like the best option to me. Do I have the hedge correct?

Edit - My math is wrong. I would need 500 calls I think... That gets expensive.

I would maybe do a combination of all 3. Buy some puts, convert some shares to calls and keep the extra cash, and risk the rest.

You might consider making the calls spreads to raise more cash, at the expense of possible upside.

 

[MikeC]

Holding -p170 for Friday and opened another for next week, anticipating that 170 will hold this week.

Now have 2x -c180 for Friday against 200 disposable shares but will roll if ITM or will sell -c185 or 190 for next week if they expire.

 

[scubastevo80]

Is that number correct? I've been eyeing the same move (rolling P165 from 3/17 to 3/24), but the BTC is still $0.47 and the STO just $2.42, resulting in a net credit just shy of $2.

Yes - filled around the open. I closed 3/17s $165 at $0.52 and opened the 160s at $1.55 and the 170s at $3.49. I'm rolling up and down vs the $165s.