Wiki Selling TSLA Options - Be the House

[intelligator]

This is so annoying, I have to quit spreads for a while. Yesterday i closed at a loss. Today I still have -c227.5/+c237.5 and -c230/+c240 for 6/9 that going to be another loss. I'm not confident in a roll to next week , who knows what's in store, even if i can improve strike, what is safe next week and beyond?? Looks like i may be taking another loss.

Meanwhile, MACD and RSI are trending down, price is turning with.

 

[dl003]

It hit my last target of 230. Very big level. If you recall, last year last half of March stock pumped for no apparent reason. Then we found out about the split. Top was made that very same day. It then traded sideway down for a few days before the last pump, only reaching a bit higher than the announcement day top. The last pump came on the Q1 P&D numbers. It was good but the reversal began there.

This time I believe the official news of model 3 getting the full $7500 credit that came out last night is playing the same role as the split news did. That is to say I'm expecting choppy down action down to the 210 area before one more pump, either from a Fed pause next week or hype around Q2 P&D, then we correct. I'm still expecting 250 minimum this year, but the stock is super overextended now and unless Q2 P&D is unbelievably high, this can't continue on forever.

I'm going to roll my -195C's out to 6/30 -230C's at 210-212.5, using a portion of the profit from the DITM puts I've sold. This morning I took profit from those and re-opened weekly ATM -puts.

 

[Jim Holder]

It hit my last target of 230. Very big level. If you recall, last year last half of March stock pumped for no apparent reason. Then we found out about the split. Top was made that very same day. It then traded sideway down for a few days before the last pump, only reaching a bit higher than the announcement day top. The last pump came on the Q1 P&D numbers. It was good but the reversal began there.

This time I believe the official news of model 3 getting the full $7500 credit is playing the same role as the split news did. That is to say I'm expecting choppy down action down to the 210 area before one more pump, either from a Fed pause next week or hype around Q2 P&D, then we correct. I'm still expecting 250 minimum this year, but the stock is super overextended now and unless Q2 P&D is unbelievably high, this can't continue on forever.

It’s always a breath of fresh air when you pop in to update your thoughts, thank you!

6/30 -C220’s are still safe in your view?

Any new option plays/positioning you’re doing for the rest of June?

 

[dl003]

It’s always a breath of fresh air when you pop in to update your thoughts, thank you!

6/30 -C220’s are still safe in your view?

Any new option plays/positioning you’re doing for the rest of June?

I'm going to roll my -195C's out to 6/30 -230C's at 210-212.5, using a portion of the profit from the DITM puts I've sold. This morning I took profit from those and re-open weekly ATM -puts.
-220C for 6/30 I think is still safe as long as you take the next opportunity to roll them up a bit.

 

[Jim Holder]

I'm going to roll my -195C's out to 6/30 -230C's at 210-212.5, using a portion of the profit from the DITM puts I've sold. This morning I took profit from those and re-open weekly ATM -puts.

Thanks. Do you stagger the weekly ATM puts or go one week at a time?

 

[dl003]

Thanks. Do you stagger the weekly ATM puts or go one week at a time?

I go out one week at a time. I did DITM puts as a delta play to 230. Now I'm going for ATM as a theta play. Might be wrong but I can't be that wrong, can I?

 

[Jim Holder]

Now I'm going for ATM as a theta play. Might be wrong but I can't be that wrong, can I?

How does that work when SP is trading at say $228 and you sell an ATM put for next week for $6.95, is there enough theta burn to not get stuck buying at $228 if we drop to $215-210 next week? And even if we rally next week it might not go much over $230 to go positive with gains.

Just trying to understand the plumbing underneath that you are taking advantage of. Sorry if it’s a stupid question.

 

[dl003]

How does that work when SP is trading at say $228 and you sell an ATM put for next week for $6.95, is there enough theta burn to not get stuck buying at $228 if we drop to $215-210 next week? And even if we rally next week it might not go much over $230 to go positive with gains.

Just trying to understand the plumbing underneath that you are taking advantage of. Sorry if it’s a stupid question.

I'm just trying to stay delta neutral since I have some stuck -195C's. My read is we go choppy down from here but not by much. Ultimately we'll pump once more and these puts will be closed then. Even if they end up stuck, which is doubtful, my 250 target for 2023 allows me to sleep like a baby.

 

[dl003]

This is a very good history lesson: whenever TSLA creates a new high on the daily RSI, that's rarely been the top. Yesterday was a confirmed new high as SP closed at 222. Today might or might not be confirmed but even if it closes red for the day, it'll still be a good bet that it will pump once more after a week of consolidation, reaching higher than 222. ATM puts can be closed then as theta should make it close to breaking even or even slightly profitable.

 

[intelligator]

-220C for 6/30 I think is still safe as long as you take the next opportunity to roll them up a bit.

What's your thoughts for 6/9 ? I will read the history lesson to have some insight.

 

[dl003]

What's your thoughts for 6/9 ? I will read the history lesson to have some insight.

Unclear but my hunch is we are already in the choppy down range.

Also consider where I'm coming from. I just took nice profits from DITM puts so re-opening ATM is actually a risk management move for me.

If you're not in need for some delta then definitely don't go ATM.

 

[intelligator]

Unclear but my hunch is we are already in the choppy down range.

Also consider where I'm coming from. I just took nice profits from DITM puts so re-opening ATM is actually a risk management move for me.

If you're not in need for some delta then definitely don't go ATM.

Like many, I didn't start ATM. I'll aim to stay 20% out with same strategy.

 

[myt-e-s-l-a]

.....

STC 1000 shr tsla @ $216.19
and
STO 10x CSP tsla 230616P200 @ 3.05

.....

Rolling above put. Hopefully it will expire worthless in 2d. TSLA @ 224

BTC +10x CSP tsla 230616P200 @ 0.60
STO -10x CSP tsla 230609P215 @ 0.84

for credit 0.24

 

[intelligator]

Dejavu , identical flat trading like yesterday, will it persist until 3:50 , then rocket down or up again?

 

[Vova]

The June 2 call 210 I sold for USD 650.

The call June 170 I sold for USD 4720 and bought back 3 call June 205 for USD 4800.

I have spent USD 126 on the original position. With these transactions I receive USD 570. Profit is USD 570-USD 126= USD 444

Position now:
-2 Call June 185
+3 Call June 205

Bought 1 extra call June 205 and sold 4 calls June 230. The 205 I bought for USD 2200, the calls June 230 I sold for USD 560 a piece which makes USD 2240. Profit USD 40. Together with the USD 444 I already received in cash that makes USD 484 received in total and position from now as follows:

-2 Call June 185
+4 Call June 205
-4 Call June 230

 

[EnzoXYZ]

Who else is looking forward to the blowoff top to free some jailed CCs?

I'm still looking to sell more 240-250 CCs for next week. Just over two weeks ago I didn't think we can break 200. Here we are almost to 230. These huge movements is how folks make big money on the other side.

 

[BornToFly]

TSLA held up very well to a very red Macro day. I'm still bummed now that I took action this morning. I flip rolled my 220CC for this week to Jun 30th 235 Puts for around a $2 credit. I think they will expire worthless right before P&D. In an attempt to get another 3,000 shares back, I sold 240 Puts for next week for $15 to get shares at the equivalent of 225. Of course, we are below that at end of day... As a contra-indicator, this might mean we are going back down now. For those with ITM CCs - you're welcome....

 

[Oil4AsphaultOnly]

Bought 1 extra call June 205 and sold 4 calls June 230. The 205 I bought for USD 2200, the calls June 230 I sold for USD 560 a piece which makes USD 2240. Profit USD 40. Together with the USD 444 I already received in cash that makes USD 484 received in total and position from now as follows:

-2 Call June 185
+4 Call June 205
-4 Call June 230

Interesting move. By adding the -230c, you've truncated your loss range from 187-241 to now be between 187-222. But your max loss is still at 205 (your position would also start losing money at prices above $237). AND your margin requirement seems to have increased to ~$18k as well. If the SP lands between 223-237, then you're golden.

In light of the upcoming FOMC meeting, that just seems to be a bit precarious and just reinforces the lesson that spreads are dangerous.

 

[ReddyLeaf]

TSLA held up very well to a very red Macro day. I'm still bummed now that I took action this morning. I flip rolled my 220CC for this week to Jun 30th 235 Puts for around a $2 credit. I think they will expire worthless right before P&D. In an attempt to get another 3,000 shares back, I sold 240 Puts for next week for $15 to get shares at the equivalent of 225. Of course, we are below that at end of day... As a contra-indicator, this might mean we are going back down now. For those with ITM CCs - you're welcome....

If it’s any consolation, my contra-indicator seems to be working too. I got scared out this AM and closed the BPS side of my ICs and then rolled & widened the BCS side to 6/16 -c227.50s/+c240s. Then got lucky, waiting a bit for the drop, and sold the +p200/-p212.50s side. Not happy with the position (spread is to close), but it’s better than losing the whole thing tomorrow or Friday. Did something similar in the other account, as well as rolling some CCs. Added a few new Friday ICs at the end of the day, so now left with:

6/16 IC: +p210/-p220/-c240/+c250
6/16 CCs: -c217.50s, -c230s
Jan 2025 -c210s

6/16 IC: +p200/-p212.50/-c227.50/+c240
6/09 IC: +p207.5/-p217.50/-c232.50/+c242.50
6/16 CCs: -c190s, -c220s
Jan 2025 -c200s

It sure looked like $225 was today’s target and 220-230 for Friday, but now I’m not so sure. I saw some really bearish put spreads (1000x contracts) traded today but forgot to take a screen shot. Perhaps some blogger saw them and has an analysis. Anyway, I’m willing to manage BPSs if we continue down because that means those pesky 6/16 -c190s can be rolled out/up and the Jan 2025 CCs can be more easily bought back. In any case, I’ll be watching, waiting, and managing if necessary. May close the IC tomorrow, just to stay away from any Friday shenanigans.

 

[intelligator]

I have doubts as well of where we go, there's a battle for 220 with calls and put OI in the 27k-24k range, highest call OI at 230, next lower is 225.

EDIT: the call and put OI ranges were incorrect... best to look at the chain now.