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Wiki Selling TSLA Options - Be the House

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FYI, over in the main thread, this could impact our CC sales.
A friend and fellow TSLA investor shared with me the following note that I am allowed to share:

…..I’ve just been contacted by one of the Biggies - the #1 by most measurements - BlackRock, to learn if I might write them covered calls for $10MM of TSLA. That is a number I could safely swing, and the 10-13% effective yield that would engender is attractive…

BUT. First, my investment philosophy does not incorporate such action - giving away upside is exactly opposite to why I’m invested in TSLA; second, I’m jiggered if I’m going even in such a small amount to assist their actions as Market Makers in having the Derivative Market tail wag the Equity Dog; and third, if a $10 trillion investor is thus interested, that may be the single most bullish signal I can imagine.
 
…..I’ve just been contacted by one of the Biggies - the #1 by most measurements - BlackRock, to learn if I might write them covered calls for $10MM of TSLA. That is a number I could safely swing, and the 10-13% effective yield that would engender is attractive…

Does that mean $10 million worth of $TSLA ... so about 500 contracts ? Looks like small potatoes for BlackRock, so somewhat skeptical of the whole thing. Or is the premium itself $10 million ... ?
 
Not sure if this is correct. Maybe anyone with paid service can see the orders.


EDIT: Just saw Artful Dodger's post in the main thread
 
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Just opened an ITM BCS - Jun 16th -365c/385c

GAMBLING that this is a short-squeeze spike (especially since the previous ATH was $329 back in 2021!), but need to give it time to settle down.

Edit: Oops! NVDA trade!

Would anyone believe that I held this even through yesterday's meteoric rise?! Was glad that it was a BCS, so the max loss would "only" be $2000. Will continue holding til Friday to see if the new month brings fresh shorting.
 
I was busy and couldn't really watch the tape today. I was very happy when I checked in a few times, thinking my 207.5CC were looking pretty good. Then I saw the close. Wow. Next two days are going to be tense....
I'm seeing you being very careful selling CC's (also because you have the position to sell a lot, of course), but seeing the price action of the last weeks, is it still really worth it going further OTM for lower premium in your opinion? It's not like 207.50 is completely safe right now. Those are probably a lot higher in value now than when you sold them. Wouldn't it be better selling less contracts closer (with higher premium) or do you prefer being further OTM?

Just out of interest :).