Looking at this big run-up and everyone expecting a pause and a positive market reaction, I'm trying to see how FOMC won't be a sell the news event. It doesn't feel like it now but I'm wondering if it will be one of those things that was obvious in retrospect.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Like a lot of folks here, i'm trying to deal with some -c200's for 6/23 - written against shares i don't really want to let go at that price. I found an intriguing option. I have a lot of leaps between 250 and 290. Theoretically I could extend from 10x -c200 for 6/23 to 50x -c300 expiring in August - the other 40x would be covered by 20x 250 leaps and 20x 290 leaps. Gives me some breathing room at the cost of putting more of my portfolio at risk of being called away if the run continues hot.
The other interesting thing about this dynamic to me is that the higher the share price goes, the better my roll options are (since i'm opening a larger number of new cc's than i am rolling.
I figured i would wait to see how the market reacts to the fed this afternoon and decide what to do - but i thought it might be good to post here to see if i'm missing anything major.
The other interesting thing about this dynamic to me is that the higher the share price goes, the better my roll options are (since i'm opening a larger number of new cc's than i am rolling.
I figured i would wait to see how the market reacts to the fed this afternoon and decide what to do - but i thought it might be good to post here to see if i'm missing anything major.
SebastienBonny
Member
Closed:
-2 Call June 185
+4 Call June 205
-2 Call June 230
For 985 USD. Together with the 484 USD that makes 1469 USD.
Leaves me the following position:
-2 Call June 230
Which I will roll into a July straddle a little later.
Finally seeing some weakness in TSLA. Let's see if we can close green. If we close near the highs I could see us gapping up again..pretty insane what all stocks are doing. You can feel like there is at least one MMD coming but maybe the demand is so strong that MMs are just letting it run.
I decided to do my weekly operations before FOMC, we had a period of relative stability around 258, during that time I:
BTC 20x -p250 (net +$6)
BTC 20x -c250 (net -$7)
STO 38x Dec 23 -c300 +$26.5
BTC 18x July 21 -c200 (-$61.5, net -$47)
STO 20x -p260 +$10.1
Where not indicated strikes are this week/next
Trade was roughly break even, a few $k lost somewhere along the way, but that's fine, upshot is to have rolled 24x -c200's to -c300, will endeavour to do the same with the rest over time
Not sure what the FOMC are up to, sounds like they were doing all they could to kill this rally without looking stupid by raising rates today... markets seem to have decided they're FOS and carry on...
BTC 20x -p250 (net +$6)
BTC 20x -c250 (net -$7)
STO 38x Dec 23 -c300 +$26.5
BTC 18x July 21 -c200 (-$61.5, net -$47)
STO 20x -p260 +$10.1
Where not indicated strikes are this week/next
Trade was roughly break even, a few $k lost somewhere along the way, but that's fine, upshot is to have rolled 24x -c200's to -c300, will endeavour to do the same with the rest over time
Not sure what the FOMC are up to, sounds like they were doing all they could to kill this rally without looking stupid by raising rates today... markets seem to have decided they're FOS and carry on...
Last edited:
bkp_duke
Well-Known Member
Bought the 2 Calls June 230 for USD 5200.
Sold 2 calls July 270 at USD 2900 and 2 puts July 240 at USD 2380. Again a USD 80 profit. Together with the 1469 USD that makes USD 1549.
Position now:
-2 Call July 270
-2 Put July 240
I can’t follow your reasoning. With the trades earlier today your profit was $1469. But you were still short 2 c230, which you have now bought back for $5200. Doesn’t that add up to a loss of $3731?
The fact that you opened a new position for July and received $5289 in premium doesn’t turn that loss into a profit of $80. For that to happen the July options first need to expire OTM.
SebastienBonny
Member
Hmmmm Tesla will close red today. Wouldn’t be surprised it’ll be snowing later today 
Bears went hell-for-leather to stop it going green at the end while the indices and other stocks were rising...Hmmmm Tesla will close red today. Wouldn’t be surprised it’ll be snowing later today
No need to get upset, I thought @Right_Said_Fred asked a fair question, selling a call for premium isn't profits until the position is closed, then and gains are realised, before that point it's a paper win or loss
If you want to be taken seriously here - maybe try to explain yourself more clearly when others engage with your posts, instead of being offended and dismissing questions from people who are just trying to understand what your strategy is.
If I had to wish anything from here it would be a consolidation around 250 until earnings, would be healthy and allow us to do some gardening...
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