Thanks.
Regarding my positions, is there any wisdom to close them now at a loss to sell them later for a better premium as the share price rises or is that trying to time and I could get it wrong?
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Thanks.
Regarding my positions, is there any wisdom to close them now at a loss to sell them later for a better premium as the share price rises or is that trying to time and I could get it wrong?
That’s trying to time - the way I see it, you have equal chance of getting it wrong or right whatever you do. But I really try to stay away from making quick adjustments to my original position for a few reasons.
1) The psychological regret is more if you adjusted the position and then you were wrong. I’d rather be patient with my original position that I entered into and be wrong then to panic BTC at a loss and be wrong.
2) At least at this point, I still see the market being choppy and relatively flat. If you always buy back when it goes against you, you will be taking a lot of losses you don’t need to and then you still have the anxiety of when to resell.
3) If you’re OTM you have >50% chance of staying OTM, all things being equal.
4) You were okay with being exercised when you sold. That’s the only advantage I know of when selling options - to be okay with either outcome is really liberating. If you take a loss just because the market went against you, it means you weren’t really okay with being exercised.
Ultimately, I’ve come to a place where I just try to psychologically balance my positions - if I find myself too desperate for the stock to go up or down, I leverage up or down the other way accordingly. I have a large long position, so selling weekly calls balances it out in that I either make a weekly income or my net worth goes up.
At the end of the day, the mental stress is not worth it to make a few bucks, especially when you never know what’s going to happen, anyway.
Excellent, very helpful psychology.
Your last paragraph brings it home for me. Finding balance between income/greed/stress is definitely key.
I’m working on that specifically. I turned what was a great April into a May with -$20k because of closing various short positions that I should’ve just held open or rolled. Hopefully June will be better!
For some good news, I was able to escape a ton of shares at $203.55 with a bit of gains which I need it for raising capital. At least that was a win!
Thanks!
willow_hiller
Well-Known Member
What would you guys call what happened this morning at the open? An IV spike? Haven't seen much movement like that before.
Wanted to sell a covered call for this week, and in the 5 minutes it took to make sure my wife was fine with selling the shares if it got exercised, the price of the call had dropped in half. Put in a limit order just in case it popped back up, but even though the SP recovered, the option prices never did.
Any way to take advantage of spikes like that other than setting optimistic limit orders?
Wanted to sell a covered call for this week, and in the 5 minutes it took to make sure my wife was fine with selling the shares if it got exercised, the price of the call had dropped in half. Put in a limit order just in case it popped back up, but even though the SP recovered, the option prices never did.
Any way to take advantage of spikes like that other than setting optimistic limit orders?
Yes - that is exactly what happened - IV went up about 8pts. for ATM and close to the money options - I don't follow IV in general - just have the option instant IV on my trading tool.
I was able to close out my $220C's for $0.60 after the pop since IV went back down - net $1.10 per contract today.
Will have another order ready to go at open tomorrow. It really is playing with fire though now that we closed over the 200SMA (IMO) and we are set for a possible run.
If the golden cross happens right before the P&D report (should be close if we stay in this range) I will be buying some medium time frame calls in the $250 range for Lotto tickets before earnings.
Not much in the way of advice, but be ready to make a move if you are looking to sell the CC's
I have some June 24 300 Leaps. Is there a strategy around rolling these? Given how far they are OTM, how long should i hold on to them before rolling? I assumed i should roll at least 1 year out. What aobut position size and strike? Prioritize position size and go further OTM? Roll flat with less contracts? Or start fresh and look at where i want to be in terms of ATM strikes?
Highest call and put OI at $200 and $185, max pain $190. C200 trimmed, C230 gained followed by C205 and C210. P185, P190, P195 gained as well.
Looking at the Lvl2 live stream there doesn't seem to be anything in the way until 205 - which looks to be a good size resistance and $204.58 is the first pivot point - I can see
So looking to open $215's this morning when we are bouncing off of $204.
Should get $1.50 each for them and have the order set already - with an auto close at $0.50 after.
Playing with fire but ok since I am in front of my terminal and can adjust quickly if needed.
Edit - lol, so far I am pretty wrong on the above....
So looking to open $215's this morning when we are bouncing off of $204.
Should get $1.50 each for them and have the order set already - with an auto close at $0.50 after.
Playing with fire but ok since I am in front of my terminal and can adjust quickly if needed.
Edit - lol, so far I am pretty wrong on the above....
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Opened 6/2 +p175/-p185 for .65 , still holding -c207.5/+c217.5
Opened P $200's for next week at $9.30 each
Thinking we get relief after this short week and debt deal is finalized.
Just not enough movement on this short week to make anything happen but TSLA is holding up really well.
Thinking we get relief after this short week and debt deal is finalized.
Just not enough movement on this short week to make anything happen but TSLA is holding up really well.
@dl003 Thank you for reiterating over and over how what goes up must come down (usually), especially when the ascent is steep and driven by macro factors and occasional euphoria.
At $204 it was hard for a noob like me to conceive it being at $195 again so soon and yet here we are (similar cycle happened several times this past month).
During the dip I was able to do some profitable housekeeping on some short calls and also sold 2x 6/2 -P195 and -P192.50 to make up for some losses. I picked those strike since $195 is the bottom of the BB and there's +GEX support at 195 too. If they go ITM and exercise I'll just sell CC against or hold for next ride up. If we lose 193 I'll consider selling at b/e.
Bullish momentum has fallen quite a lot (China economy slowdown news perhaps adding to the pressure?):
Dealer Greeks buildup are heading into "caution going long" territory (see far right, long red lines = higher stock prices):
Friday's price distribution looks quite volatile:
At $204 it was hard for a noob like me to conceive it being at $195 again so soon and yet here we are (similar cycle happened several times this past month).
During the dip I was able to do some profitable housekeeping on some short calls and also sold 2x 6/2 -P195 and -P192.50 to make up for some losses. I picked those strike since $195 is the bottom of the BB and there's +GEX support at 195 too. If they go ITM and exercise I'll just sell CC against or hold for next ride up. If we lose 193 I'll consider selling at b/e.
Bullish momentum has fallen quite a lot (China economy slowdown news perhaps adding to the pressure?):
Dealer Greeks buildup are heading into "caution going long" territory (see far right, long red lines = higher stock prices):
Friday's price distribution looks quite volatile:
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EVNow
Well-Known Member
Not doing anything with the 205 calls until Friday.
Some data for consideration per Cary Artec, Wicked Stocks:
Solid support in the low $190's ($193-$190.48) and can contain selling pressure. Can go long and buy calls there.
A close below $188.71 brings $170.56 in 1-3 weeks and can bottom out there. At $176 can go long again anticipating $208.93.
Can tap out at $208.93 for the rest of the summer.
Solid support in the low $190's ($193-$190.48) and can contain selling pressure. Can go long and buy calls there.
A close below $188.71 brings $170.56 in 1-3 weeks and can bottom out there. At $176 can go long again anticipating $208.93.
Can tap out at $208.93 for the rest of the summer.
It's flagging above the old resistance now turned support. This time the daily timeframe confirmed a fresh high on the RSI, meaning it will spike once more once the flag is complete, then a correction should take place.
Thank you.
Are the 6/30 -C215 and -C220 still safe (counting on pull back after hitting 215)?
EVNow
Well-Known Member
Cary's numbers didn't really work out in this run up. His provided resistance levels were easily passed and some other levels took time.
True. Though maybe the euphoria in the air blew it up and is hard to account for?
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