Wiki Selling TSLA Options - Be the House

[Right_Said_Fred]

I guess we will get to see the $270 that TA is predicting.

I became more positive on the stock (and the stock market overall), so on Friday I took a more agressive position and rolled the almost worthless 8 x -p195 and 8 x -p205 for 6/16 to 8 x -p225 for 6/23 and 10 x -p250 for 6/30. Premium received $2.40 and $13.00. Those have already melted away.

I’m looking at buying 1000 shares with the p250, but at the moment it doesn’t look like that will happen.

 

[BornToFly]

I have -240CSP for Friday that I'm not rolling up yet. I'm waiting for Powell tomorrow....

 

[intelligator]

Breathe in, breathe out , we got a small break, it makes good sense to close out another losing call spread.

 

[CHGolferJim]

Getting close to writing some Jan '24 $400s.

Just closed some today. Part of a protracted LEAPs roll from Jan’24 to Jun’25 to be reported later in the Options thread. Good luck with ‘em……..

 

[bingoz]

I closed all my cc last week for a loss. Now I just hold shares only, i am not comfortable selling calls at all, I know it needs to breath, it's overbought, but I try not to get stuck here especially P&D and ER coming in a few weeks.

July 2020: $57-$75 - +33%
July 2021: flat
July 2022: $226-$298 - +31%
July 2023: ???

 

[Bunky]

So, massively overbought, up 60% in a month, record number of green days, still going in AH and it's Powell time tomorrow

What could possibly go wrong

 

[walkrunflyy]

closed 2 CCs for a big loss ($6k each)
I had these 2 June 16th 205 ccs that I sold for peanuts when Tesla was 169 a month ago.

Lost appetite to sell CCs

Madness

 

[chudiddy]

closed 2 CCs for a big loss ($6k each)
I had these 2 June 16th 205 ccs that I sold for peanuts when Tesla was 169 a month ago.

Lost appetite to sell CCs

Madness

I have 5 of them that I have to roll. Ill probably have to go out to Jan '24 and hope for a pullback. Just don't know at what strike. And I know that once I buy these back, TSLA will tank. Never fails.

 

[intelligator]

@walkrunflyy , that's tough to stomach, i feel your pain. After walking away from CC, please don't trade spreads! These last two weeks I lost six months of earned credit over two BCS that went bad, yes that fast. I have 10 more to buy back at a loss... if the short leg survives overnight extrinsic.

 

[MikeC]

We all know this stock will swing way too high and way too low. The scary thing for my DITM CCs is that we haven't really even swung high yet compared to historical standards. We're still grossly undervalued here from a bull perspective. Why wouldn't the SP keep going up until the shorts get margin called and liquidated on the highs (after doing that to longs in Dec/Jan on the lows)?

I've been letting half my DITM CC contracts exercise for put money and then doubling the remaining contracts and rolling out to the next week. It gets the strike up about $20 but I still can't catch the SP. I'm also converting ITM LEAPS back into shares now and starting to think I'm losing too much upside exposure with all these CCs. It's nice to deleverage a bit but maybe not the right move when the stock is running like this.

 

[juanmedina]

closed 2 CCs for a big loss ($6k each)
I had these 2 June 16th 205 ccs that I sold for peanuts when Tesla was 169 a month ago.

Lost appetite to sell CCs

Madness

Seriously. My biggest mistake here was thinking that I knew better and that the stock would stay around $217.5 for a while. I could have roll the calls fast but I really tough that level was going to hold plus I am on vacation and I haven't been seating staring at the stock feeling the pressure because maybe that would have forced me to do something.

I am not sure what to do here and I don't see many options. Maybe I will let all my shares go and sell Tesla puts or trade SPY lol. Rolling is too costly; Jan 24 $300 would cost me $1k to 2k per contract.

 

[CHGolferJim]

Seriously. My biggest mistake here was thinking that I knew better and that the stock would stay around $217.5 for a while. I could have roll the calls fast but I really tough that level was going to hold plus I am on vacation and I haven't been seating staring at the stock feeling the pressure because maybe that would have forced me to do something.

I am not sure what to do here and I don't see many options. Maybe I will let all my shares go and sell Tesla puts or trade SPY lol. Rolling is too costly; Jan 24 $300 would cost me $1k to 2k per contract.

Keep in mind that rolls, even if for debits, can still pay for themselves by capturing capital gains through strike improvements. If you have the cash. Perhaps at some point selling shares to raise the cash could be needed. Keep rolling and eventually dip(s) will allow you to get out whole.

 

[ReddyLeaf]

Ok folks, it’s the retro-cocktail hour. I remembered Paydirt’s thread from June 2020 and decided to do a little rereading. Also, we’re all probably having problems similar to the Hertz blow off, so time to review, regroup, and relearn some things. Lots of great learning available in some of those old options threads, a few current (and greener) posters. Anyway, here’s my point: where is today’s record green 13 day run as compared to other epic SP rises? I didn’t do an exhaustive search (but please feel free to correct me or add your more in-depth analysis), but decided to pull up the chart and annotate with guesses.

Notice the initial quick drop (just like EOY 2022), and quick rebound, followed by relatively flat. Then, another jump, flat, jump, flat, etc. Some jumps are 70%, similar to the past two weeks. Sow where are we now, the 1st or 2nd question mark? Are we really in the beginning spurt of another 4-10x run by EOY 2023? Yikes. If so, it’s way past time to convert everything into LEAPS just like @OrthoSurg (who probably quite happy with his family and servants on his own private island).

Edit: scale is logarithmic and today’s volume looks much more significant (about the same as 2020). Definitely whales feeding now, probably mutual funds.

 

[BornToFly]

@walkrunflyy , that's tough to stomach, i feel your pain. After walking away from CC, please don't trade spreads! These last two weeks I lost six months of earned credit over two BCS that went bad, yes that fast. I have 10 more to buy back at a loss... if the short leg survives overnight extrinsic.

Those of us that were making a killing on spreads a couple years ago have largely sworn to never touch them again. It cost one member his life, others their entire portfolio, and a massive 2/3 share loss for me. Stick with CC and CSP, and worse case scenario, let them get assigned.

 

[BornToFly]

Orthosurg is fine, but not happy with his leaps right now. He had to sell Jan 2025 (I think) CC when TSLA was half of what it is now. He got very little money for those CCs that are like 10X Red now. His hands are tied now and he is focusing on work and family. Selling LEAP CCs when the SP is low is not good....

 

[ReddyLeaf]

Orthosurg is fine, but not happy with his leaps right now. He had to sell Jan 2025 (I think) CC when TSLA was half of what it is now. He got very little money for those CCs that are like 10X Red now. His hands are tied now and he is focusing on work and family. Selling CCs when the SP is low is not good....

My mistake. I thought he converted everything into bought LEAPS near the early January lows.

 

[elasalle]

I have a ton of Jan 24 400 CCs …big paper losses… ain’t sweating yet as I know I can roll to Jan 25 and Dec 25 to 600s 700s when they open up … cheers!!

 

[BornToFly]

My mistake. I thought he converted everything into bought LEAPS near the early January lows.

I think he did, and has CC against them.

 

[Jim Holder]

Seriously. My biggest mistake here was thinking that I knew better and that the stock would stay around $217.5 for a while. I could have roll the calls fast but I really tough that level was going to hold plus I am on vacation and I haven't been seating staring at the stock feeling the pressure because maybe that would have forced me to do something.

I am not sure what to do here and I don't see many options. Maybe I will let all my shares go and sell Tesla puts or trade SPY lol. Rolling is too costly; Jan 24 $300 would cost me $1k to 2k per contract.

You may already know this, consider buying matching calls as a 1:1 delta hedge (or as many as you can afford). This way the more TSLA rises, the gains on the +C offset losses on the -C. If we get a retracement down, you can then cut the +C on the way down for little loss and maybe even some gain. It was suggested to me upthread and has come in handy in my situation.

 

[Jim Holder]

Update after some rolls and other tweaks thanks to the various tips and suggestions shared by fellow travelers here:

Lots available:
700 @ $215.11 CB -- Were called away 6/9 @ $234.24 after premium ($13k gain, used to buy some +Cs for delta hedging), looking to rebuy on dips
1,900 @ $243.02 CB
400 @ $269.97 CB
500 @ $294.25 CB
3,000 @ $358.79 CB

---

My bag of snakes:

6/16
-C255 (x19) + $5.87 premium; against the $243CB (nets $260.87 =$17.85/share; $33k gains; okay if called away, will re-buy the shares on dip)
-C270 (x4) + $1.70 premium; against 400 @ $269.97 CB (nets $271.70 =$1.73/share; $692 gains; maybe I'll roll this up and out)
-P250 (x2) + $2.75 premium

6/23
-C220 (x7) + $15.69 premium (=$235.69); waiting to see how SP is next week. Might roll or let exercize at loss between cost I can buy shares at this/next week or something else. Will see.
-C245 (x19) + $13.09 premium (=$258.09); this will be the shares I re-buy after the 1,900 are called away 6/16. Hopefully not too far apart $$ and can be a wash, I don't mind. Better than realized loss of BTC the CC. If called away will re-buy again (hopefully on a dip).
-P230 (x1) + $3.04 premium

6/30 - Week before P&D
-C215 (x3) + $4.59 premium (=$219.59); monitoring for roll/BTC or something else
-C220 (x15) + $4.93 premium (=$224.93); monitoring for roll/BTC or something else
-C230 (x2) + $24.36 premium (=$254.36); monitoring for roll/BTC or something else

7/21
-C240 (x15) + $2.34 premium (=$242.34); monitoring for roll/BTC or something else
-C245 (x4) + $2.04 premium (=$247.04); monitoring for roll/BTC or something else

9/15
-C240 (x19) + $5.62 premium (=$245.62); monitoring for roll/BTC or something else
-C270 (x3) + $2.57 premium (=$272.57); might buy 300 shares now toward this
+C360 (x35) @ $4.70 cost ($16.4k); as a delta hedge to help offset DITM CC's

12/15
-P275 (x3) + $44.84 premium (was a flip of 3x -C215 from 6/30 to reduce 6/30 exposure)

1/19/24
-C293.33 (x4) + $6.29 (=$299.62); against 400 @ $294.25 CB, but I might buy a few hundred on dips to cover and add to gains.
-C360 (x30) + $3.01 (=$363.01); was oroginally against 3,000 @ $358.79 CB before the parabolic move. It may still expire OTM, will monitor.
+C300 (6) @ $25.08; as a delta hedge to help offset DITM CC's

Overall I think my bag is more or less manageable, though it remains to be seen how it all turns out at the end re gains/losses/damage. Between the 2022 downward plunge to hades---and fighting to keep the account alive---to the 2023 parabolic run---and fighting to keep the account alive---is definitely an education of a lifetime!

Lessons I'm taking away:
1) Sell CC's and/or CSP's one week out at a time
2) Cut losing CC's quickly before they balloon into massive losses by thinking a run is "just temporary."
3) No more "prophesizing" what TSLA will or will not do before or after events (i.e., P&D, FOMOC, etc)
4) Hesitate less to buy shares when resistances are broken and stock enters bullish trend (i.e., I could have bought at $198, $220, $241, etc...)
5) Keep cash reserves for emergency position repairs
6) Remember to ask others for ideas before giving into despair and taking drastic actions (i.e., poor rolling choices, BTC at massive loss, etc.)
7) I'm sure there's more...

This is a great community and I'm grateful to have found you all.

Good luck out there!