Wiki Selling TSLA Options - Be the House

[elasalle]

not-advice
More adjustments for me this morning. I'm using this $250ish share price to get back closer to balance in cash and shares.

Sold some of my purchased Jan '25 200 strike calls at $100 (in at $42, out at $100). I've got most of these left, but raising some cash at this point feels good to me.

This gets me closer to 1 part cash to 2 parts shares, so still overweight shares from where I'd like to be.

EDIT: And some Jun '24 200 strike calls. Feels like I'm holding a fire sale. Reality is that I kept buying the dip most of the way down to 100 (130s I think was my lowest buy). Selling some of that and I'm still >50% shares (by which I mean both shares and high DTE calls). More sales are necessary to get back to 50/50.


Also thinking the same as you on the shitputs idea. I bought July 7th +p195s for .88. My feeling is that we've run up so far, so fast, with effectively no news along the way, that a fall back into the low 200s on a similar lack of news is trivial. And still way far ahead of where we were a month ago. This purchases hedges against that outcome.


I'm looking for a noticeable down day before opening new csp or bps.

House Rule:
Sell, Don't buy ... so selling CC's instead of buying PUTS cheers!!

 

[traxila]

I don't know. Locking up shares for a whole year for just $500 per contract?

I mean, next week's 290s are ~$1.45 and that might be considered pretty safe.

Never said it was the most lucrative trade. But for those who are looking for safe quarters, it does not seem to get much safer.

 

[Max Plaid]

1. Why didn’t the c825’s show up on early 6/16 Max-Pain charts?
2. Tomorrow, June 16th, Quad witching day, is liquidity dramatically up or down from today, or even, even? I have to do some DITM cc rolls, should I do before 1PM to avoid late-day illiquidity?

Did you uncheck the Zoom In box?

 

[Max Plaid]

not-advice
More adjustments for me this morning. I'm using this $250ish share price to get back closer to balance in cash and shares.

Sold some of my purchased Jan '25 200 strike calls at $100 (in at $42, out at $100). I've got most of these left, but raising some cash at this point feels good to me.

This gets me closer to 1 part cash to 2 parts shares, so still overweight shares from where I'd like to be.

EDIT: And some Jun '24 200 strike calls. Feels like I'm holding a fire sale. Reality is that I kept buying the dip most of the way down to 100 (130s I think was my lowest buy). Selling some of that and I'm still >50% shares (by which I mean both shares and high DTE calls). More sales are necessary to get back to 50/50.


Also thinking the same as you on the shitputs idea. I bought July 7th +p195s for .88. My feeling is that we've run up so far, so fast, with effectively no news along the way, that a fall back into the low 200s on a similar lack of news is trivial. And still way far ahead of where we were a month ago. This purchases hedges against that outcome.


I'm looking for a noticeable down day before opening new csp or bps.

Decided to go for 50x July 21st -c200's, but as I was out playing music I missed the pop and trying to get a good mimic at close I missed by 3c, will look for a pop to grab them tomorrow...

Monday markets are closed, BTW

 

[UltradoomY]

Just watched - this is interpretation.

Could be his idea of a synthetic - Sell the Put / Buy the Call
Could be opposite - Sell the call / buy the Put

Could be a Straddle - sell both

For the position size and timing (right around earnings) this to me is a Straddle - theta burn and up or down gives you upside protection to $295 and downside protection to $215.

I would imagine this gets an exit after the P&D depending on directionality from the winning side.
2 weeks of theta burn and some directionality.

Don't agree with the analysis but it was a fun video to watch.

 

[UltradoomY]

Holy COW!!!!

Just saw this Dark Pool print for TSLA today at $248 - $20B!!!

 

[willow_hiller]

Holy COW!!!!

Just saw this Dark Pool print for TSLA today at $248 - $20B!!!
View attachment 947316

Today's range was $247.29 - $258.95, so I don't think there's any way of us figuring out whether it was at the Bid or at the Ask, and intuiting bullish or bearish on that front. But it certainly is interesting.

 

[Bunky]

Is it me or are the premiums for next week actually looking decent? Esp considering it’s a shorter week.

Thinking about legging into an IC to try to bail out some CC’s

 

[Cherry Wine]

I haven't tracked it in awhile and don't have tools handy, so I'll shamelessly ask here - is IV relatively elevated at the moment?

 

[willow_hiller]

I haven't tracked it in awhile and don't have tools handy, so I'll shamelessly ask here - is IV relatively elevated at the moment?

40th IV percentile, according to TOS. So not too elevated in terms of the last 52 weeks, but I don't have recent context to compare against.

 

[Blue horseshoe]

I haven't tracked it in awhile and don't have tools handy, so I'll shamelessly ask here - is IV relatively elevated at the moment?

Relatively speaking yes IV is up. Prior to this 13 day runup we had premiums near lows and many here were talking about how paltry premiums were. Compared to 2021 and 2022 we aren't near the IV highs we experienced those prior years

Edit:
As a reference I was selling monthly CC in 2021 and 2022 that were 20% otm and each would typically receive over $800. During consolidation periods premiums would average around $500 and at low points they'd hit $200 or so.
3 weeks ago 20% otm cc were raking in less than $200 per contract and we are now at $670 per contract

 

[Jim Holder]

He suggests a close over 258 brings 265>272> and can fall off from there.

A close below 243> brings 226>203 and turn up from there.

 

[kcveins]

Looking for some not advice..

Sold CC 20x 195 0630
Sold these 1 month ago, so obviously was caught by the wave up - good for my TSLA, not so much for the CC
I'm not wedded to these shares but they have a cost basis of $15 and are in a taxable account.
Looked for rolls, but nothing stands out to me.
Any thoughts

 

[ReddyLeaf]

Holy COW!!!!

Just saw this Dark Pool print for TSLA today at $248 - $20B!!!
View attachment 947316

Somebody wants this to close below $250!?!? As of yesterday, lots of OI calls at 250, so maybe that’s the reason.

 

[ReddyLeaf]

Looking for some not advice..

Sold CC 20x 195 0630
Sold these 1 month ago, so obviously was caught by the wave up - good for my TSLA, not so much for the CC
I'm not wedded to these shares but they have a cost basis of $15 and are in a taxable account.
Looked for rolls, but nothing stands out to me.
Any thoughts

That far in the money, you can only roll for credit at the same strike, e.g. you can only forestall the inevitable. Unfortunately, you essentially “sold” those shares at $195, and now you must buy them back at $250, or roll for a looooong time (2025) to get any strike improvement, or roll at a debit (paying part of your loss). The only other way out is to roll and “hope” the SP drops. Unfortunately, hope is not a great strategy.

 

[SebastienBonny]

Relatively speaking yes IV is up. Prior to this 13 day runup we had premiums near lows and many here were talking about how paltry premiums were. Compared to 2021 and 2022 we aren't near the IV highs we experienced those prior years

Edit:
As a reference I was selling monthly CC in 2021 and 2022 that were 20% otm and each would typically receive over $800. During consolidation periods premiums would average around $500 and at low points they'd hit $200 or so.
3 weeks ago 20% otm cc were raking in less than $200 per contract and we are now at $670 per contract

But what was the SP at that time? Aren’t premiums related to the SP as well? Going 10% OTM was giving 100 for weeklies when we were trading around 110, now that’s 200-300. Which is normal of course.

I wasn't doing options before the stock split, but followed premiums since then.
I can recall 10% OTM gave you like 1% (so when we were trading at 800 you could get 800 USD weekly for a 10% OTM PUT/CALL).
Correct me if I'm wrong.

 

[Max Plaid]

Looking for some not advice..

Sold CC 20x 195 0630
Sold these 1 month ago, so obviously was caught by the wave up - good for my TSLA, not so much for the CC
I'm not wedded to these shares but they have a cost basis of $15 and are in a taxable account.
Looked for rolls, but nothing stands out to me.
Any thoughts

So you received something like $5 for the initial premium and now they're trading $62...?

Depends how patient you are... October expiry you get +$15 strike improvement to -c210, December -c220, -c270 for September 2024

If you keep the 195 strike then quarterly roll to October pays $73, so you could reduce 20x to 18x, if you're prepared to sacrifice the initial premium (assuming was $5), then you can reduce to 17x

If you have cash then you could sell some ATM weekly puts - 6x per week and you can buy back one call, buy some October +p200's with your first put sell, then you have a safety-net on those in case of a pull-back, and a drop below 200 would save all your calls too

Combine the two above, quarterly all to less contracts, selling puts to close out, then can go faster than you think

A more nuclear approach could be to roll to a 10x October 260 straddle, that pays $33 for each side, cuts your expose down to 10x calls and puts, ATM, obviously a big move in either direction needs to be dealt with, but you essentially halve your risk

Not advice, of course, just what I would be looking at myself

 

[Max Plaid]

But what was the SP at that time? Aren’t premiums related to the SP as well? Going 10% OTM was giving 100 for weeklies when we were trading around 110, now that’s 200-300. Which is normal of course.

I wasn't doing options before the stock split, but followed premiums since then.
I can recall 10% OTM gave you like 1% (so when we were trading at 800 you could get 800 USD weekly for a 10% OTM PUT/CALL).
Correct me if I'm wrong.

Seems to be moderately elevated compared to the last 12 months:

But look at that skew!!

Both charts from free account here: TSLA Implied Volatility Chart Tesla

 

[cheqsgravity]

Looking for some not advice..

Sold CC 20x 195 0630
Sold these 1 month ago, so obviously was caught by the wave up - good for my TSLA, not so much for the CC
I'm not wedded to these shares but they have a cost basis of $15 and are in a taxable account.
Looked for rolls, but nothing stands out to me.
Any thoughts

Good advice above. But there is also just closing them out and being tax neutral, if you are willing to let 400-500 shares go. Scrounge enough to close a single option, then sell 100 shares to get cash to close more options. I estimate you will lose 400 shares. Loss of options will cancel profit of shares sold and be tax neutral. The rest of shares will be untouched.

 

[intelligator]

P255 OI nearly doubled, more OI added at C270, neither being the hard wall or highest OI ... p240 and C260 are the local highs