Wiki Selling TSLA Options - Be the House

[UltradoomY]

BTO $180 P’s yesterday at close for $0.72

Closed for $1.50 today

Resold the 03/24 collars I closed yesterday again today
-$175p’s / +$185c’s
This time for $1 each- will look to close on Monday morning when we are at $187 or so for a quick $4 or $5
Might keep some of the call’s open to see what the FED response is going to be but it’s hard to beat theta after Wednesday unless over $190
Have a safe and Happy St. Patrick’s Day

 

[EVNow]

Seems to me perfectly setup for a ~180 finish near the Max Pain. With resistance at 183.36 and support at 178.04.

So the Friday close is 180.13. Cool.

I tried to BTC 177.5 puts at 1 cent. No takers .... hopefully we don't get some huge bad news AH Earlier my idea was to "roll" the 177.5 puts to 200/210 call spread. But now I'll just wait and see how Monday goes before selling the call spread.

I'm rethinking the idea of selling puts to re-enter the market. Invariably when the SP drops (like it happened this time) I'm stuck with puts too expensive to buy back and so I miss the stock buying opportunity. So, I'll just sell call spreads instead if I think the SP will go down presenting buying opportunity.

 

[Jim Holder]

Seeing heavy OI for 150p for 4/21.

View attachment 918596

Is it true when OI goes high on puts pretty FOTM down MMs try not to let the SP drop there so they don’t have to pay out, or the heavy Put buying action itself drags the price down like a magnet? I’ve heard both but I don’t know what’s actually true in real life.

 

[EVNow]

Seeing heavy OI for 150p for 4/21.

View attachment 918596

I was planning to sell spread -160/+130. That would create a large OI at 130 .... doesn't mean much

 

[bry_bry]

Erm, CPI was a couple of days back on Tuesday this week

Yea, sorry I meant only FOMC on Wed. (mixup, coming Tues CPI is for Canada haha) Suffering market whiplash..

 

[ReddyLeaf]

Unfortunately, today I’m not able to get the -190c/+200c side to close, even at bid (only $0.01) because so it’s far away and no trading volume. It’s worse for non-integer strikes -192.50c/+202.50c, chosen as a roll to avoid previously traded strikes.

You can always buy back the short side for 0.01. Long side doesn't matter if you don't close - since they don't add to your margin. That is what I've been doing.

Thanks. Worked perfectly. Closed all short sides at $0.01 at 3:45. It’s a shame having to give the MMs another $100, but definitely don’t want to be trapped by some after hours shenanigans. This frees up lots of cash for next week, just need to not waste it on poorly-timed opportunities. Next week seems to be primed for a bounce, with lots more call action than puts. Maybe it will even test $200, though MaxPain says $182 currently. Need to practice patience and let the SP declare itself first.

 

[SpeedyEddy]

With these amounts of options Tesla could not have ended better for MM as wel as daily + weekly+monthly SPY ended very well for them. For next week max pain little above 180, but with low OI all depends on rate hike news. 50bp would be disastrous. For the first time since 102 I have a lot of -P opened (95 june ‘25) just to make the cash to close or roll some -C140 /145 around interest-news. Still believe a short $TSLA heavy dip can be close (TSLA rising quickly, after PD and Q1 ER which should tell their real story, even amongst falling banks) but if the real bad macro news is later than April 1st a short squeeze is even possible and the pull back will be from a much higher level, confirming that we mainly can look up again after this horrible year. Certainly on rate-pause-news.

 

[adiggs]

I tried to BTC 177.5 puts at 1 cent. No takers .... hopefully we don't get some huge bad news AH Earlier my idea was to "roll" the 177.5 puts to 200/210 call spread. But now I'll just wait and see how Monday goes before selling the call spread.

I've never had a market order for a BTC not get taken. I HAVE had .01 limit orders not get taken though. Dunno why - it's one of the corner cases that has me doing market orders when the bid/ask is small, especially when its 1 penny as it frequently becomes close to expiration.

EDIT to add: I've also had spread limit orders (spreads are required to have a limit) not get taken, that I was able to BTC the short leg at market plus STC the long leg, and get teh exact same price as I'd offered as a limit.

These tend to be day of expiration type situations that are nearly valueless. Things start getting weird as price nears 0.01.

 

[EVNow]

I HAVE had .01 limit orders not get taken though. Dunno why - it's one of the corner cases that has me doing market orders when the bid/ask is small, especially when its 1 penny as it frequently becomes close to expiration.

I was planning to increase the bid to 2 cents at 2 minutes to close. But the SP looked set to close around 180 - so didn't bother

 

[CHGolferJim]

Executed another buy-write in Roth to replace shares I let assign 10Feb at $190:

• bought at $178.44
• sto 17Mar$180 CC at $5.60 (had planned 1DTE but difference >$4)
• 8-day profit of $7.16 if SP > $180 on 3/17
• rollable

This 17Mar$180 CC was assigned after Friday’s close of $180.13. Will reload on Monday at $180 or below, and resell for 24 or 31Mar$180 (currently $5.90 and $8.30).

 

[dl003]

This 17Mar$180 CC was assigned after Friday’s close of $180.13. Will reload on Monday at $180 or below, and resell for 24 or 31Mar$180 (currently $5.90 and $8.30).

I wonder why you didnt just roll the call out 1 week. Assuming no SP movement over the weekend, would make no difference vs waiting til Monday.

 

[CHGolferJim]

I wonder why you didnt just roll the call out 1 week. Assuming no SP movement over the weekend, would make no difference vs waiting til Monday.

Using a wrap non-taxable account, so no transaction or tax costs or considerations, and there’s always the chance to catch a MMD and snag an extra $3. With the bank and Fed actions often making news over weekends (see CS/UBS), it feels more nimble to wait until Monday, or possibly even the mid-week FOMC meeting.

 

[Jim Holder]

TLDW: $172 for downside containment, $190.78 for upside if we get past $184.44. Breech either and the fun begins ($140’s or $221). Downside more favored.

 

[dl003]

The bounce from 164, coupled with deteriorating macro elements ( retail sales, auto loan defaults, bank failures...), looks corrective to me, meaning 164 wasn't the low of wave 2. However, new lows will come only after P&D, which leads me to believe P&D will be considered a *miss* and we sell off from 190-200.

 

[EVNow]

TLDW: $172 for downside containment, $190.78 for upside if we get past $184.44. Breech either and the fun begins ($140’s or $221). Downside more favored.

Weekly Containments 194.09 & 172.03. Max Pain 179. Should be an interesting week, with one more to go before P&D.

 

[ReddyLeaf]

The bounce from 164, coupled with deteriorating macro elements ( retail sales, auto loan defaults, bank failures...), looks corrective to me, meaning 164 wasn't the low of wave 2. However, new lows will come only after P&D, which leads me to believe P&D will be considered a *miss* and we sell off from 190-200.

Perhaps this will be the catalyst to fill that January 25th gap.

TLDW: $172 for downside containment, $190.78 for upside if we get past $184.44. Breech either and the fun begins ($140’s or $221). Downside more favored.

So what are people’s play for FOMC week/Wednesday? Sit out? Sell straddles before meeting for the IV crush? Usual trades? Sell -c200s when we hit $190, sell -p170s at the MMD? I’m still trying to wait until Wednesday for the ICs, but got a couple uncovered lots, so might sell -c200s on a spike. ICs will probably be +p150/-p160/-c210/+c220. If the macros go south (Credit Suisse deal failure), I might just sit this one out and preserve cash to buyback my Jan2025 CCs.

 

[Jim Holder]

So what are people’s play for FOMC week/Wednesday? Sit out? Sell straddles before meeting for the IV crush? Usual trades? Sell -c200s when we hit $190, sell -p170s at the MMD?

Based on the chart performance lately, our resident oracle and TSLA whisperer @dl003, as well as Yoona (now on Twitter @lastadam), Pierre Roberge, Cary Artac, Tradytics (showing balanced between bullish/bearish for this week) + macro, I’m more comfortable selling -C210’s and up (for shares I’m ready to have called away) than sell -CSP above $155. The sense I get is the smart ppl aren’t selling CSP right now until there’s more clarity.

I plan to keep the starter short I opened Friday (-C270 8/18/23 on shares I have trapped there; earlier expiration dates weren’t worth the effort, and I plan to BTC well before anyway) and add to them on dips and hold through FOMOC, since everyone seems to be in agreement that we’ll go down after the next pop (both TA-wise and macro induced, though a rotation from banking into tech might delay it) and “definitely” see $160-170 before $240-250 and beyond.

I’m waiting for apex of next pop to STO a bunch of -C220 and -C242 for closer expiration on shares I have trapped there too. Premiums will be better if I wait.

Re selling CSP, on Friday I STO a couple -P150 4/6/23 just for fun (it paid a measly $140 per contract ). I don’t believe they’ll go ITM by then but even if they do, I don’t mind owning some shares down there anyway.

I’m afraid of selling -P170 or -P165 in the current environment. Would rather keep the cash free and open to act based on what’s in front of me and not tie it up.

I’m no expert and am still learning, so the above is not advice ;- )

Let’s have a great week!

 

[BornToFly]

Norway is killing it. New Record.

https://twitter.com/x/status/1637541102684196872

 

[Max Plaid]

Well, I guess that's the $CS LEAPS down the

 

[Oil4AsphaultOnly]

Well, I guess that's the $CS LEAPS down the

There went the beer money!