very impressed with your trades this year!
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Thanks - I am staying small with all trades because I want my plan to be that the trade is going to work or the rescue plan has wiggle room.
Most (over 80%) have been under 15 contracts leaving lots of room and using profits to buy leaps or put in the bank - appreciate all the analysis you provide - it helps!
EVNow
Well-Known Member
That is an interesting strategy. Low # of contracts but high premium - so total premium is same as large number of contracts at low premium. I've to think about that.
EVNow
Well-Known Member
I've to think more about it - but one downside is ongoing management.
My current strategy is to sell options that are 10% to 15% OTM for small premium (30 to 50 cents). I generally don't have to manage them - just keep a GTC order to buy back for 1 cent open and on Friday either roll the options or let them close and open new options on Monday.
With high premium ATM options I would get 10x the premium, so I can sell 1/10th the contracts. So, would I close them after getting say 50% profit each side separately ...? Wait until Friday ... ?
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I set stop losses if I do not want to sell / buy - usually for 12% (because 10% can happen quick and I still like the position)
For profit - I do that actively - if I see 30% but momentum shifts or news pending and I want out - I close.
Or just the opposite - if I see 40%, 50% or more and there is room to run I let it be. Usually out by Thursday either way - gamma squeeze on a friday up or down is something I do not want.
But long story short, since I don't mind buying the put side or selling the call side I can choose to ride it out if needed and let them execute.
EVNow
Well-Known Member
One interesting point is that people on the east coast have an advantage in this. By the time I'm looking at stocks in the morning after getting kids ready for school etc is 9 AM (12 PM EST) - the market has been already open for 2 1/2 hours. IV is down and I've missed the highs and lows.
Once upon a time I used to wake up at 6:30 in the morning and trade. It was nice when I was making money - but when things went south in 2019, I hated getting up early only to see SP go down further. I decided not to do that again.
Anyway, even if I were to get up at 6:30 - I'm still so sleepy, I can rarely figure out whats happening and trade without making mistakes (like trading in the wrong account or buying instead of selling !).
ps : Do you use the daily trading support/resistence levels any of the TA guys publish ? I've wondered about using those ...
For eg. today support is at 159.57 and resistance at 164.42. Would you wait for 164 to sell calls (or buy back puts) and the other way round at 159 ? Today's trading range has been 159.65 to 162.95.
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It really sucks being a trader on the west coast. When I have too much on the line or the stock is really volatile, I just can't sleep past 6:30 am. A lot of times my morning trades are bad anyway and it would have been better to stay asleep.
Started to roll 160c to 165c for next week and 162.50p to 157.50p. The SP is actually right around where I want it to expire this week - but that also means I'm NTM on all positions and they're retaining too much value for a satisfying close. I kind of want to hold some til expiration but it would also be nice to sleep past 6:30 tomorrow.
I wish I could just fast forward to Friday close every week and then just deal with any losing positions - it's the watching all week and worrying about the stock taking off in either direction that's the most stressful.
You probably already know this but when I find myself stressing and worrying about a position, I find it means I sized too much and I reduce size at next opportunity to where I feel more comfortable.
Opposite issue in Europe where the markets are still open while I'm wanting to go to bed...
EVNow
Well-Known Member
Well, in India it opens at 7 PM
Wasn’t easy trading from there on my vacation last summer.
Try trading from the opposite side of the world!
Markets currently open 11.30pm to 6am but sometimes of the year its 1.30am to 8am. I'm mostly daytrading at the moment. Which means watching the ticker intently for the first half of trading and often right through the night. It's rough enough now but I'm planning to go back to doing some regular work soon and that will become a real juggle.
Markets currently open 11.30pm to 6am but sometimes of the year its 1.30am to 8am. I'm mostly daytrading at the moment. Which means watching the ticker intently for the first half of trading and often right through the night. It's rough enough now but I'm planning to go back to doing some regular work soon and that will become a real juggle.
Any guesses for today's end of the day stock price. Asking for a friend 
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Well Tesla increased prices and introduced new models models in some markets that should have some good cost efficiencies. So my sentiments is shifting slightly more positive.
.Well Tesla increased prices and introduced new models models in some markets that should have some good cost efficiencies. So my sentiments is shifting slightly more positive.
willow_hiller
Well-Known Member
Any guesses for today's end of the day stock price. Asking for a friend
In case these are helpful. Max pain at 162.5, but call wall at 170 and put wall at 160. So you can see how the call open interest at 165 would mean market-markers would prefer 160<sp<165, but they might have to settle for 165<sp<170.
How to sell puts into this rally if you're afraid it's a bull trap: wait for 170. If we see 170, then it's not a bull trap. Then wait for a pullback to 165 before selling puts aggressively.
How do you feel about -c177.5 5/12 ? 182.5 seems ultra safe, too close to the sun 5$ lower?
The chartist in me say 100% safe but the TSLA bull whispers "what if?". However, before breaking 171 we should pull back to retest 165 once, if this rally has legs. I'll close these calls on that retest.
How do you feel about -c177.5 5/12 ? 182.5 seems ultra safe, too close to the sun 5$ lower?
How do you interpret this?
Thanks for the idea. I'll look to open a new sell call when it comes close to 170, and roll my -c160 on the pull back.
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