EVNow
Well-Known Member
If ER is good - SP will go up. Price cut next week could bring it down .... why risk that ?
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
jeewee3000
Active Member
Well you are mostly a contrarian-indicator, so there's that.
(I kid, I kid).
jeewee3000
Active Member
I like that it's out of the way now. That way analysts can ask questions about it. Else it's like "we lower prices but you can't talk to us for another three months".
Other than the annual meeting on May 16th, in this specific case.
Everyone vote!
Here's you derisking on $50 wide strangles while I'm sitting on 10x 1:3 -190 straddles
I'm actually more worried for the upside than the down... there's $31k of premium in those positions, so I really don't mind -p190's to assign with a net $159 price, might be painful in the immediate future, but will win on those going forwards, if only for selling -c190's every week until they go ITM
I'm more concerned about the July -p250's I still have open, if we did get a dump then a strong risk they could get early assigned, but then I could sell the shares and look for a 1:4 straddle at a lower strike, same expiry...
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They may simply have cut prices today so that on the earnings call they can say “no further price cuts are planned for the foreseeable future.” Cutting prices can lead people to put off purchases to get a better deal hoping for better an even lower price.
There's enough premium there to close 1 or two strikes, no? Or roll a few ATM? Of course you lose the income, but you'd slowly close out the DITM calls...
Maybe you'll get a chance tomorrow if the earnings suck
If they announced it at the start of the call, analysts would have an hour to ask about it, and they could keep pointing to their amazing margins (If they still are amazing). We will see. I’m worried….
No offence, but you're always worried these days, emotional (and financial) trauma from the last 16 months!
I also find it odd timing, a cut last week, another today when they could have woven it into a narrative during earnings
I do like to think that Tesla know what they're doing though - I don't always agree with Elon when he's posting on Twitter, but he's very, very good at managing his companies; Zack and Drew are no slouches either
SpeedyEddy
Active Member
Maybe so, but Tesla, the company or the insiders, are not interested in stock price but only in value, because value won't pull back the coming years. So now aggressively pushing all the cars they can make at any profitable price keeps them being able to even increase turning the world into sustainability faster, opening more factories. So finetuning prices per market is the best they can do for shareholders that HODL. When Valley of death comes, they will increase prices again, I expect this to begin no later than begin 2024. If by then, simultaneously costs have been pushed back even further, gross margin will be above 30%, while competitors are at 5% GM at best. Don't you underestimate Tesla's production-mastership and engagement to always look for skipping costs (the best part being no part etc))
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jeewee3000
Active Member
"The best option contract is no option contract" - the HODLers
Closed the rest of my covered calls. Taking risk off the table given how TSLA is appearing to hold up.
Let my worst problem be that I made less on a trade than I thought I would if TSLA drops to $170 or less…
It feels freeing to have shares unencumbered by CCs so I can sell them at any pop. I have about 1,800 I’m looking to cut at $205 or thereabouts to raise some cash. keeping them locked in a covered coal puts at risk the chance to exit mid-week if we pop there and then fall off.
After earning winds dies down I plan to STO new CC’s on next highs, and if uptrend is strong and sustaining, I may STO some CSP’s below support.
GLTA
Let my worst problem be that I made less on a trade than I thought I would if TSLA drops to $170 or less…
It feels freeing to have shares unencumbered by CCs so I can sell them at any pop. I have about 1,800 I’m looking to cut at $205 or thereabouts to raise some cash. keeping them locked in a covered coal puts at risk the chance to exit mid-week if we pop there and then fall off.
After earning winds dies down I plan to STO new CC’s on next highs, and if uptrend is strong and sustaining, I may STO some CSP’s below support.
GLTA
SpeedyEddy
Active Member
(And I agree not focussing on stock-holders, not paying dividends is the right thing to do until the steep part of the S-curve in adoption is in full progress (we are only at the start of the incline really))
EVNow
Well-Known Member
Most definitely the company is interested in stock price. If not for anything else - because it is part of employee compensation and SP affects their morale.
I expect price increases only when demand at a given price is above supply. This might happen after they start producing smaller, cheaper vehicles.
SpeedyEddy
Active Member
Sure,
The employees are encouraged bij SP too (which is in Tesla's interest of course, but for workers it is (made) clear that this compensation comes with a risk. But the share is not meant to be sold anytime soon. (hence value being the only thing important.))
Second, on car-price only regarding cheaper cars.
I don't believe that is the case, because there will be a serious period in which nobody wants to buy ICE and EVERY EV is being sold, at almost ANY price. Named the valley of death. (The moment everyones is on a dying Ice and wants an @EVNow )
The employees are encouraged bij SP too (which is in Tesla's interest of course, but for workers it is (made) clear that this compensation comes with a risk. But the share is not meant to be sold anytime soon. (hence value being the only thing important.))
Second, on car-price only regarding cheaper cars.
I don't believe that is the case, because there will be a serious period in which nobody wants to buy ICE and EVERY EV is being sold, at almost ANY price. Named the valley of death. (The moment everyones is on a dying Ice and wants an @EVNow )
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You have a much higher risk tolerance, probably the highest here. And that’s paying off.Here's you derisking on $50 wide strangles while I'm sitting on 10x 1:3 -190 straddles
EVNow
Well-Known Member
I had sold some 165 puts on Monday to buy back today. But looks like I may have to eat some loss or take the risk of closing after ER.
That is the issue with selling on ER week, even if the idea is to close before ER. Since IV keeps going up, even small SP movement against you can bring the option price above sell price.
That is the issue with selling on ER week, even if the idea is to close before ER. Since IV keeps going up, even small SP movement against you can bring the option price above sell price.
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