^ this is starting to look good. No rate increase tomorrow, a P&D beat and throw in a little buy back and to the moon.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I should have closed my CC yesterday. Today I'm going to be operating so I won't be able to watch the SP at all. Maybe I'll get a chance to close tomorrow morning. If not, Hopefully 210 is safe for Friday, otherwise I'll be managing. Strong China deliveries and the Moody's upgrade might finally get the SP climbing.
SebastienBonny
Member
I stopped believing these positives would make the stock rise hard, but you never know.
No problem rolling contracts to higher strikes
.4/6 -c190 (cc) and -p160 (short leg of $30 wide spread) ... stuck in the middle thinking that they each could expire. When I rolled there I didn't take note of P&D on the 2nd. The rollup of the -c190 might be necessary, prefer not. Glad I didn't open a BCS yesterday , better pricing today and opportunity to go farther out for 3/24.
Closed these out today keeping with my plan to be out for tomorrow.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
Closed the call side ($185's) for $7.50
Closed the Put side ($175's) for $0.95
total gained for 2 days - $5.05 each
I am really really liking these collars (Sell put / buy call) where I can get a credit to open and close fast for a few $$ profit each contract.
This has allowed me to use only CSP's and buy the call free - so even in a losing situation (hard because I set trailing stop loss on both) I have "Wheel" shares.
When we get clarity from the FED - I will look to open another Collar on Thursday or Friday for next week.
Cheers
jeewee3000
Active Member
You don't think this uptrend can last? Seems to have lots of positive momentum going for TSLA right now.
Not sure if I completely understand the concept of rolling an option. I was kind of waiting to get into the situation where I might need to figure it out. I have 2 x CC $207 expiring this Friday. So would a roll be to sell two CCs DTE 03/31 at around the same price as I would need to BTC the $207s? Or do I also add in the premium I got for selling the $207s in the first place? So currently I need $92 to close them and I sold them for $48. So if I sold 03/31 $225 for $82 total then I would turn around and buy the $207s back. Is that about how it works?
dc_h
Active Member
Soooooo.......
What I would recommend doing is closing all sold options (yes financial advice) and going back to page 1 of this thread.
Please, I implore you to take the Options Alpha course - it's only about 20 hours and shorter if you run at 2x speed.
You have embarked into one of the most risky financial instruments that there is - profit and loss are compounded with options - because they are leverage.
Most - if not all (pretty sure all) have lost vast sums of money doing this. Everyone on this board has, it is not for the faint of heart.
High tax bills, money for taxes that is no longer there, losing massive portfolios that took years to build.
I'm not trying to be crass here, but after the courses, then take the tutorials for your particular broker to learn how to roll a contract.
Please, please proceed with caution. The elation of seeing people post wins and losses here is tough to keep you out of the game, but you have to know all the rules before you start playing.
and when you do start, please start small, just enough to keep it interesting, and then consider the why and how it worked or didn't - which is the original beauty of this thread was all of us sharing ideas and the "why" we went with a position.
And whoever thought to mention BPS.... no Christmas card for you... forever.
jeewee3000
Active Member
Seems bazaar that I would need to take a 20hr course to understand how to roll a CC. I don't really learn that way. I need to experience it first hand. I've watched the course videos that would pertain to rolling CCs, and watched YouTube videos about it. Am I not even close in my above scenario? How complicated can it be? it's not like I'm BPS'n. I did start out small. I've only been selling one or two calls a week.
Yeah, you sell a call further out at higher strike for about the same as the buy back price of your current position.
207.50 for 3/24 is (last I looked) a little less than 225.[00]
However, rolling at break even may or may not be the position you want to have.
Last edited:
Buckminster
Well-Known Member
Been underwater on my sold puts for months. Sold calls today for the first time in months. Don't make me regret it!
You don't want advice from me, esp regarding rolling.
It depends on personal situation, implications of selling the shares via contract assignment, fiscal goals(some weekly %, max gains, position preservation), expectation of share movement, etc... .
Rolling up and out for a credit improves your potential return vs current position, but only helps a little in a crash (better off selling shares now) or a to the moon run (better off buying back calls at a loss). Plus timing, even roll is now about 222.50 (225 last post)
My not advice is to ask yourself if the new position is one you would choose to have, independent of your current position (assuming circumstances allow a choice)
You make it sound more complicated than it is... a roll is simply the closing of an existing position and the reopening of a new position... in fact the two have zero correlation
Some brokers provide a roll function, where you can specify the delta credit you want, then they do the transactions simultaneously. Others, like mine, don't and you have to do two separate transactions. The risk in this is that the price of the underlying can move before you make the second transaction, sometimes this works in your favour, sometimes not
If you have committed all of our shares to the initial cc's then you need to close out first to free them up, if you have enough shares then you can choose to write the new positions before closing the old - this is down to either a judgement call on the direction of the stock at that moment, or luck, mostly the latter I would say
SebastienBonny
Member
Rolled 3/31 200CC to 4/14 210 CC for 0.84 credit.
Now looking for a rise above 200 to sell additional CC at higher strikes (220+).
Now looking for a rise above 200 to sell additional CC at higher strikes (220+).
Similar threads
