Wiki Selling TSLA Options - Be the House

[EVNow]

How are you rolling those? Are you rolling for strike improvement? I assume you have to roll by over a week.

Any advise for people with experience with underwater cover calls?

Not advise !

I rolled -205/+227.5 to -220/+257.5. So, $15 improvement. I could just roll 207.5 CC to 207.5 cc for some small credit. Both for next week.

If SP stays put for a couple of weeks / comes down, I can improve the credit spread enough to escape. CC is more difficult if SP doesn't come down and I'll have to think of selling longer DTE calls. I can also increase the number of contracts, which I didn't do this time.

 

[Cherry Wine]

Finally exited my 30x 6/9 -c245s. I did it in tranches: 10x at open for $5.50, 10x were rolled to 6/16 -c265s at no net cost, and bought 10x near close for $0.90. Total net loss: ~$4,700. Could've been worse.

Only short position open now are the 10x 6/16 -c265s.

 

[adiggs]

Just realized that my -135/+115p for Jan '25 is now worth about $4. Since it used to be more like $17 when I rolled it (share price down in the 110 range and staring into the abyss), that's a pretty serious win. Raises the rather interesting question - BTC for the 20% loss? Or maybe roll some of them to short DTE and closer strike, and go for an early close and earn back that last $4. H'mm... gotta spend some time with the chain as I hadn't put any effort into having a plan for this.

I've also got 175/150 put spreads in Jan '25 as well. Sounds like they'll be similarly well off when the share price is around $300 -- that would be nice.

EDIT: They really are $4.

The June 16 -220/+200 put spreads are .75. Sell 10 of those, close at 50% gain, and that pays for 1 of the high DTE spreads. H'mm... I think it's time to be looking seriously at clearing some of these out.

 

[Vova]

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

Still some premium left in the June 230 calls. I am waiting for my opportunity to make an additional USD 1000 cash. The left -2 calls I will roll on to July together with some puts I will sell at the same expiration date.

 

[BornToFly]

Still some premium left in the June 230 calls. I am waiting for my opportunity to make an additional USD 1000 cash. The left -2 calls I will roll on to July together with some puts I will sell at the same expiration date.

When are the expiration dates in June?

 

[CHGolferJim]

Next week will be intensive gardening with FOMC/CPI hopefully providing an SP breather so I can rescue various DITM 16Jun CC $185-$190. Looks like I can roll to 18Aug$205 at a slight debit/increase in contracts in return for keeping the shares and capturing recent appreciation. Gonna take some time to get out from under these contracts on about half my shares; looks like limited CC income in 2H23; difficult to let the buy-writes go below market.

 

[Vova]

When are the expiration dates in June?

The monthly ones, so the 16th of June.

 

[Max Plaid]

This crazy stock...!

Obviously the July 21st 1:3 -200 straddles I wrote got hammered... well they'll return exactly what I was looking for when I wrote them, but would leave a lot of money on the table too, and as it's 50x -p200 and 150x -c150 there's a few of them - given the choice I would prefer to hold the underlying LEAPS as they have Dec 2025 expiry and lots of scope for call writing the next few years

Now I can just let them run to expiry and then see what to do next, but as the puts are already +80%, I'm thinking to start rolling the calls up, a few at a time

By closing out the -p200, I can flip 2x -c200, currently priced around $50 to a 3:2 -250 straddle, so 3x -p250's for every 2x -c250, so maybe 30x -p & 20x -c

Always a risk that this Gamma squeeze reverses suddenly, as we have seen in the past, and TSLA heads to fill that gap at $146, yeah, yeah, I know "zero chance of that happening", right...?

 

[Hiline]

This crazy stock...!

More than crazy. It went up more than NVDA over the last month, on a percentage basis, on zero financial update.

 

[EVMeister]

More than crazy. It went up more than NVDA over the last month, on a percentage basis, on zero financial update.

NVDA is at an ATH. TSLA is not and in the eyes of many investors fell much further than it should have based on company performance. So you can consider some of this a correction.

 

[Max Plaid]

More than crazy. It went up more than NVDA over the last month, on a percentage basis, on zero financial update.

Gamma squeeze IMO - shift in sentiment triggered a call buying frenzy, not the first time we see it and has the tendency to reverse at some point too, again for nor specific reason

 

[Vova]

There was one poster who made the comparison of tightening the straps on crypto to the surge of shares like Tesla. I tried to find this posting, Unfortunately I didn't succeed but thumbs up for this poster. I also believe that.

 

[Jim Holder]

From $166 to $244 in less than a month. Just wow (and painful for those of us holding NTM/ITM short calls).

Can someone pls order a re-test of $220-230 this week so we can close some badly-times CC’s?

 

[BornToFly]

CPI comes out Tuesday. Fed rate on Wednesday. I predict the SP closes on Friday between 200 and 320....

You're welcome!

P.S. - I have -240 CSP, -280CC, and -300Naked Calls.

 

[Jim Holder]

https://twitter.com/x/status/1667201126356201473

 

[SebastienBonny]

https://twitter.com/x/status/1667201126356201473

Wouldn’t mind this scenario short term . But a monday morning dip could do the trick as well.

 

[Hiline]

Thế FSD hit piece will probably pull the stock down this coming week. If not for this, something else will. TSLA price is primarily news- and hype-driven. No one really knows how to price the stock.

 

[Jim Holder]

Looking for non-advice on some of my biggest headaches currently:

I have 19x -C240 9/15, got $5.62 for it back when I needed to roll it last month, and it’s now red -$46k. It was suggested earlier to maybe flip them to put.

I checked this in TOS and can roll
19x -C240 9/15 to 19x -P250 11/17 for $8k credit, turning the loss to close it into to a potential gain.

My thinking is that, while we can never say with certainty, by November 2023 TSLA should have completed any retests and likely () be well above $240-$250 by then or at least near it so it’ll likely expire worthless.

Am I thinking about this properly? Is there something else I should know about or could do, perhaps another date/strike (like -P240 12/15 @$1.2 credit, closer to end of year hype/rally), or better wait some more for the retest before playing with this contract?

Would this also work to convert deep red 30x -C360 1/29/24 to -P180 12/15/23 (for credit) or is that taking on too much risk?

(Meantime on Friday at open I bought 35x +C360 9/15 @ $4.70 to stick on at least some Delta hedge on while I figure out the best move.)

Thanks in advance.

 

[ReddyLeaf]

@Jim Holder, since I flip rolled my ITM 6/9 & 6/16 BCS to 6/30 BPS, the SP is now guaranteed to pullback. @BornToFly and I are competing for the worst timing trader, so you might wait a bit. Another option is to flip half and keep half, so you are still straddling and at least one side is guaranteed to win. My positions are in pretty bad shape, though a few are near ATM, I still have deep ITM 6/16, 1/2025 CC. I still can’t believe that I sold 6/9 -c240s at $0.65, thinking there was no way the SP rise would continue. Big whales were buying, shorts covering, I don’t know, but it just destroys my positions. I’ll eventually be fine, but this is another reminder NOT to sell options against the trend, even if you think you’re hedged.

 

[MikeC]

Looking for non-advice on some of my biggest headaches currently:

I have 19x -C240 9/15, got $5.62 for it back when I needed to roll it last month, and it’s now red -$46k. It was suggested earlier to maybe flip them to put.

I checked this in TOS and can roll
19x -C240 9/15 to 19x -P250 11/17 for $8k credit, turning the loss to close it into to a potential gain.

My thinking is that, while we can never say with certainty, by November 2023 TSLA should have completed any retests and likely () be well above $240-$250 by then or at least near it so it’ll likely expire worthless.

Am I thinking about this properly? Is there something else I should know about or could do, perhaps another date/strike (like -P240 12/15 @$1.2 credit, closer to end of year hype/rally), or better wait some more for the retest before playing with this contract?

Would this also work to convert deep red 30x -C360 1/29/24 to -P180 12/15/23 (for credit) or is that taking on too much risk?

(Meantime on Friday at open I bought 35x +C360 9/15 @ $4.70 to stick on at least some Delta hedge on while I figure out the best move.)

Thanks in advance.

Do you have the cash to back all the puts? If using margin backed by shares, that will evaporate quickly on a big dip and you will be exposed on the downside.

What did you do with your 6/9 calls? I saw you had some -c245 - did those expire?