Looks like wave 5 ended at 174.43. Ideally we shouldn't drop lower than 169.5 and definitely shouldn't break the 166.5. Looking for some choppy sideway action here for the next 7 days.
-
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
Are you selling more -P 5/12 160 or too risky at this point? (I BTC mine @0.07 for happy gains at todays HOD).
I BTC my +C175 6/9 at $174.12 for gains (6.10 to 8.10).
Last edited:
In my case it's when I get an absolute conviction about something and go "all in", then it invariably does the opposite
So that's the position I find myself in now, about to sell all my shares for net $164
However, I see a bright future selling puts in the run-up, I think OK to be aggressive, but just use 50% of my available cash, so that if it does go against me I have the possibility to double-up for rolling down...
If I end up buying back in at that same price, I'm fine with that too
I'm going to roll my 10x -c150s again. I think there's still a chance of a market freakout over the US debt ceiling that provides an opportunity to close this position over the next three weeks.
I'm selling 165P and 170P for 5/19.
You are running into a similar problem I had. I sold shares at 160ish, and I've been selling CSP to make money and try to get them back. Break even is around 170 now, which means all the money I "made" is gone if I get back in at 170. Fake profits....
In my case it's when I get an absolute conviction about something and go "all in", then it invariably does the opposite
So that's the position I find myself in now, about to sell all my shares for net $164
Try this:
Buy 167,5/180/192.5 call butterfly
Sell 167.5P
Net credit $1.06
It's like buying share at 166.5, and you'll enjoy 100% of the upside next week up to $180.
That’s bold considering the failed break over $174, I guess you’re counting on a W5 run before then.
That's not even remotely close to some of the bolder things I'm doing, like shorting 10 LEAP calls for every 100s of TSLA.
@Jim Holder Just to continue my education, decided to try a single 2 DTE wide iron butterfly (IB) at +p140/-p170/-c170/+c200 at $4.80, $3000 at risk, premium received near $480, so up to 16% return (480/3000). Did not leg into the position, but instead opened all at once when SP was near $170. This really only works if the SP ends exactly at $170 on Friday. In reality, I won’t wait that long and plan to close early, hoping for theta decay to provide a small return, maybe $100-$200.
EVNow
Well-Known Member
I had 7 figures invested in short term calls ... twice
ps : It turned out good once, next time lost all the money. Not a good idea.
Do you ever cycle in and out of contracts when it gains a nice amount (i.e., the -C190 5/19 dropped from $0.55 to $0.33, for me was $1,000+ gains), and rebuy back at $0.55 or higher?
It’s annoying to see gains climb and evaporate with the market rhythm which could’ve been captured in the meantime. Though some people say they never touch their contracts through the ups and downs.
(Question open to all, really ;-))
Last edited:
It depends on the wave. For example: if you sell calls at top of wave 1, it's prudent to close them at the bottom as wave 3 can be devastating if you're positioned yourself wrongly. If you sell OTM calls at top of wave 3 and it's a major one, you probably can hold those calls all the way to top of wave 5. ATM calls you should always close at nice profits. Macroeconomic timing and opex also play a big role. If the stock reverses to the downside on Wednesday morning then might as well hold those calls all the way to EOD Friday. Reversal happening on Monday leaves more room for bottoming and subsequent upside reversal.
Sure, I could have bought back the p160 and p162.5 (which I sold for $2.34 and $2.23 earlier this week) for $1.10 and $0.80 and then have reopened the positions for much higher premiums. But that’s a conclusion I can only draw after the fact, knowing that the strong morning performance was followed by an unexpected lousy afternoon performance. If the stock had zoomed up to $180 I would have BTC much too early. I prefer to sit still, not move in and out of positions and let time do its work.
Last edited:
Yeah, I'm thinking about it - looking for $1 though
Given that the markets reversed today, not what was expected, I wonder if the rest of the week won't be a bit rough too?
And did y'all see #BTC dump -5% in the space of a few minutes??
Edit: looks like Google saving the day, dragging up SPY and QQQ and other tech stocks as a result
Last edited:
EVNow
Well-Known Member
I think there are a couple of strategies one could follow here.
- Monitor closely and make the closing decisions
- Setup limit orders at a particular profit level
- Wait for Friday to close / Roll
I generally follow the 3rd strategy. Many times when I don't, I've gotten into trouble. I think (1) works for those who don't mind spending a lot of time tracking - I'd even call them "daily traders". 2nd and 3rd strategies are better suited for those who are trying to collect rent (which is basically the theme of this thread "be the house").
Yes, it's very easy to make realised gains, but end up with less portfolio, in fact that a very real risk if you're not careful, portfolio disappears slowly and to add insult to injury, you'll pay taxes on the nothing you have left!
I have to admit that I'm not desperate to go back into the stock in a hurry, if we trade sideways or start rising then weekly puts will be fine for me - I'm considering some LEAPS as insurance against a big run up, but am very wary of that, but surely December 2025's would be safe, right...? Who knows, will see!
In any case, plan to play relatively safe and am only going to write 50x contracts in the first instance, leaves plenty of spare cash to roll down in the event of a big pull-back
If the music stopped now then I'd be writing 50x -p175's for next week @$10, if they go ITM then I could choose to let them assign and get my shares back, but would gladly pocket the cash and write something similar the week after...
How about those price cuts? Until that stops the stock is not going nowhere but down. The $180cc's that I opened today are already at 80% profit lol. I am worried about more cuts in the US.
How are Troy's numbers looking? Yey or nay?
How are Troy's numbers looking? Yey or nay?
Last edited:
I'm a lot less concerned about more price cuts now than I was two weeks ago.
I don't care about Troy's numbers. I can tell you that all the European and China trackers on Twitter show Tesla having the best quarter ever. Massive record coming for Q2, and I have no doubt it will be beat in Q3 and again in Q4. The TSLA spring is getting wound tighter and tighter.
Similar threads
