Wiki Selling TSLA Options - Be the House

[dl003]

@dl003 Can you share how you're currently positioned and what happens after the EW playbook ends as it did recently?

The first leg down took the form of an extended wave 1 impulse. First it found support at the r:r line (upper red dash) before bottoming out at 164.5. As mentioned previously, I was looking for 171 to close my -170P but took 169.3 today as they were green enough for me, plus the AGM AH and debt ceiling meeting made me want to take my money and go home early, which I'm glad I did. My target for the end of this correction is 157-161, which is not that far away.

For next week I have -185C and -165P. Barring any black or white swan, the latter half of May the the whole month of June should be pretty profitable for selling calls and puts as the SP tends to revert back to the mean as we get closer to P&D. Question is where's the mean? Is it 165?

 

[Max Plaid]

Aside the usual macro doom and gloom, that was one hell of a positive meeting. Elon on top form, very upbeat. And finally someone asked about him stepping down (he’s not), and we got JB back - loved the reaction he got from the audience

AH seems to like it too…

 

[Jim Holder]

The first leg down took the form of an extended wave 1 impulse. First it found support at the r:r line (upper red dash) before bottoming out at 164.5. As mentioned previously, I was looking for 171 to close my -170P but took 169.3 today as they were green enough for me, plus the AGM AH and debt ceiling meeting made me want to take my money and go home early, which I'm glad I did. My target for the end of this correction is 157-161, which is not that far away.
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For next week I have -185C and -165P. Barring any black or white swan, the latter half of May the the whole month of June should be pretty profitable for selling calls and puts as the SP tends to revert back to the mean as we get closer to P&D. Question is where's the mean? Is it 165?

Thank you.

What are some of your favorite methods for determining the -P and -C level you prefer before you STO? I’m trying to learn so I can do so independently (and don’t have to bug you too often )

 

[dl003]

Thank you.

What are some of your favorite methods for determining the -P and -C level you prefer before you STO? I’m trying to learn so I can do so independently (and don’t have to bug you too often )

Assuming I can roll out and up/down $5/week, 5/26 -185C & -165P can be comfortably rolled to -200C & -140P by 6/30. No way TSLA can be outside of this range right before P&D so these are the strikes that can be fixed if things go wrong.

 

[vikings123]

It seems that I wasted my money on puts but that makes me happy.

Well..I was wondering when the Fabre interview would go off the rails but it is what it is. Not liking the action in after hours so maybe your puts stand a chance. Hopefully they were funded by CCs.

 

[Jim Holder]

Assuming I can roll out and up/down $5/week, 5/26 -185C & -165P can be comfortably rolled to -200C & 1-40P by 6/30. No way TSLA can be outside of this range right before P&D so these are the strikes that can be fixed if things go wrong.

Yes. My question was what are some of your favorite methods you use to choose which level you pick for the -P and -C (i.e., 165, 160, 155, etc; 180, 185, 190, etc.)?

 

[MikeC]

I think this will change sentiment from that last earnings call. The Elon stepping down FUD cancelled out the Yahoo CEO news but now maybe we can recover a bit. Elon spending more time and focus at Tesla is nothing but good for the company and stock.

On the other hand, we have debt ceiling, economic enema, and Elon saying don’t look at the stock market for the next year. I still don’t think we’re taking off until we see tangible margin improvement.

Planning to close out -c170s and -c172.50s on weakness tomorrow, or at least rolling up to 180+.

 

[dl003]

Yes. My question was what are some of your favorite methods you use to choose which level you pick for the -P and -C (i.e., 165, 160, 155, etc; 180, 185, 190, etc.)?

Strikes that have built in plan B is one of my methods. The chart tells me if I should be leaning ATM on the puts or the calls.

 

[Jim Holder]

Some things I've gathered along the way to help re decision making in options trading (really all trading). It may be basic for pro traders, but I found it valuable to drill into my head over and over:

Rule 1: Don’t go on margin in uncertain times (unless in a true emergency, then get off margin as fast as possible)
Rule 2: When in doubt close the trade
Rule 3: Live to trade another day
Rule 4: Follow these rules

-All profit is good profit

-You can’t worry about missed opportunities. There are many trade opportunities we miss every day that we didn’t think about. We just have to try to execute our trading plan as best we can and accept that we won’t get the perfect return every time.

-Make your money, get out, don’t look back, and go make more. (How many times I've went back to see what the Buy-to-Close or Sell-to-Close was trading at "now"...just self-torture)

-Trading means executing our strategy. Strategy development is where we make the decision where to exit. If we consistently see that we could have made more by holding, run the numbers and if that’s so, adjust the strategy and execute accordingly. Don't feel bad that you followed your plan. That’s just good trading.

-Don’t confuse execution with strategy development.

 

[bry_bry]

Well..I was wondering when the Fabre interview would go off the rails but it is what it is. Not liking the action in after hours so maybe your puts stand a chance. Hopefully they were funded by CCs.

I enjoyed his reference to Princess Bride, offer me money, offer me power.. I don't care. hahaha on why he doesn't stop Tweeting and speaking his mind, for fear of hurting the stock.

 

[Right_Said_Fred]

Guys, there are too many posts here which belong in the main thread. Please keep it focussed on options and the stock movement. Commenting on everything Elon does or Tesla does is not okay. And Twitter is a deadly sin.

 

[intelligator]

A ditch was created at 165, OI at c180 is 82K, p150, 54K, p160 52K. Yesterday towards end of session I traded down by replacing the closed -p167.5/+p157.5 with -p157.5/+p150 5/19... I covered the small loss, added credit. Seeing we are slightly up pre-market, will aim for selling calls or a spread at or above 180.

 

[MikeC]

Looking strong on decent volume and defying the NASDAQ. Closed all -c170 and a couple c172.50 at open. Holding -p170. Bought a 175c for next week just to gamble.

Edit: mixed up c and p

 

[SebastienBonny]

Nice spike here. Difficult to know when it's the right time to step in, but looking at 6/30 190 CC right now.

 

[UltradoomY]

Nice gradual build this morning - I am still holding my $180P's that are down to $8.35 now from $12 yesterday - average on these is $11.50

Will be monitoring VWAP and RSI - I think that the overall sentiment last night is what has offered a good opportunity today.

Looking to open some CC's for next week at the $185 strike if I can get $1.75 each.

Looking to close my this week puts if it gets below $8 each.
Will look to buy Puts next week as well, I think the debt ceiling narrative ramps up the fear and we go back to $160ish

Just opinions... NFA

Edit - out of the $180P's for $7.25 each

 

[Max Plaid]

STO 15x 5/26 -c170 @$6.1 - order was an optimistic one when the SP was below 168, but as I’m out and about, not time for stock watching

Still holding 40x -p167.50 & 15x -c167.50 for this week, waiting for the Theta to drain out. Not too bothered about the calls going ITM, that can be rolled out a few weeks - that’s the benefit of not going all-in

 

[Jim Holder]

STO -C187.50 5/26 for 0.95
STO -C190 5/26 for 0.68

Disappointed I went flat yesterday for the AGM and left a nice chunk on the table from the -P165 and -P165 5/19, such is life. Yes, could have gone the other way.

I wonder how high the exuberance will take TSLA by 5/26.

 

[intelligator]

Disappointed I went flat yesterday for the AGM and left a nice chunk on the table from the -P165 and -P165 5/19, such is life. Yes, could have gone the other way.

I too, often have "position closing remorse". We don't know what we don't know other than how to salvage , protect and reposition. Re-read your post from last night, you said it well

 

[Jim Holder]

I too, often have "position closing remorse". We don't know what we don't know other than how to salvage , protect and reposition. Re-read your post from last night, you said it well

Yep!

 

[EVNow]

Disappointed I went flat yesterday for the AGM and left a nice chunk on the table from the -P165 and -P165 5/19, such is life. Yes, could have gone the other way.

As a wise guy said the other day ...

-You can’t worry about missed opportunities.