Wiki Selling TSLA Options - Be the House

[SebastienBonny]

As I have 50x July 21st +p200's that I bought a few weeks back, and now 30x TSLA put at $260, I have to say that July -240 straddles for +$22 look very tempting for pretty low risk

But first I need my broker access back and as I'm dependent on the post that won't be until tomorrow at the earliest now... double meh!!

Did you take a look at Bolero (KBC) yet? It can be slow sometimes (not a lot), but it's a good app.

 

[intelligator]

Hmmm, not much SP movement. I placed a 6/30 -C262.5 order for 1.00 , probably more likely to hit at .85 , we'll see. Can anyone confirm options flows are about even? They were slightly bearish all morning.

EDIT: Just saw this , bringing flows back to bearish.

 

[Right_Said_Fred]

It looks like IV is dropping a lot, at least for long-term calls. The stock is up 2.5% but I see calls which are not moving up or even losing value (LEAPS).

 

[myt-e-s-l-a]

...

P/L +4k on tsla +3.3k on CC

TSLA @ 262.05 +2.59

BTC +10x CC tsla 230623C260 @ 4.20
Sell 1000 tsla @ 262.00

open new position

STO -10x CSP tsla 230630P250 @ 4.50

for credit $4.50

Closing CSP position and Buying back 1000 shr @ 248 that was sold @ 262

BTC -10x CSP tsla 230630P250 @ 5.80

BTO 1000 shr tsla @ 248
and
STO -10x CC tsla 230707C255 @ 7.80

for credit $6.50 (+4.50 -5.80 +7.80)

 

[Cherry Wine]

It looks like IV is dropping a lot, at least for long-term calls. The stock is up 2.5% but I see calls which are not moving up or even losing value (LEAPS).

A data point if anyone cares: the Jan '24 -c400s (delta of ~.17) I sold a week or so ago are up about ~10% off their daily lows today ($7.55 vs $6.85) with TSLA up about 3%. Based on delta alone, I would expect the increase to be almost double that amount - seems to support the drop in IV assertion.

I had intended to keep the position open for awhile, but the quick profitability (~40% right now) has me wondering if there's a way I could conservatively roll them down and in as we approach earnings in the hope of double dipping on that potential profit for the rest of the year. I would have to average .25 per share per week, for the 29 weeks between now and their current expiration, to exceed their current remaining value. Seems doable. Also provides another opportunity to roll them out and up on another sharp stock price increase. The risk is if there's a sharp downturn and it requires much lower strikes to capture that same premium than it otherwise would have.

Hm.

 

[Jim Holder]

It looks like IV is dropping a lot, at least for long-term calls. The stock is up 2.5% but I see calls which are not moving up or even losing value (LEAPS).

Forgive the noob question, what does a lower IV imply?

 

[stealthyc]

Forgive the noob question, what does a lower IV imply?

IV means Implied Volatility, so by definition a lower IV implies lower expected volatility, which lowers the extrinsic value of options.

 

[Jim Holder]

IV means Implied Volatility, so by definition a lower IV implies lower expected volatility, which lowers the extrinsic value of options.

Thanks. I meant vis a vis price action. Does lower or higher IV limply bullish or bearish price action or just volatility, and lack thereof means range-bound of say $250-$280?

 

[SebastienBonny]

Thanks. I meant vis a vis price action. Does lower or higher IV limply bullish or bearish price action or just volatility, and lack thereof means range-bound of say $250-$280?

Lower IV implies less chance/expectation of high spikes up or down. Higher IV the opposite, hence high IV when approaching earnings.
Can’t say IV correlates to bullish or bearish price action, BUT IV can go higher as well when a steep rise or fall of the SP occurs.

 

[adiggs]

Thanks. I meant vis a vis price action. Does lower or higher IV limply bullish or bearish price action or just volatility, and lack thereof means range-bound of say $250-$280?

On its own, neither. Higher IV means the market is pricing in larger moves in either direction (options are more expensive). Lower IV means the market is pricing in smaller moves in either direction.

 

[Jim Holder]

Lower IV implies less chance/expectation of high spikes up or down. Higher IV the opposite, hence high IV when approaching earnings.
Can’t say IV correlates to bullish or bearish price action, BUT IV can go higher as well when a steep rise or fall of the SP occurs.

On its own, neither. Higher IV means the market is pricing in larger moves in either direction (options are more expensive). Lower IV means the market is pricing in smaller moves in either direction.

Thank you, it's clear now.

So in this case seems like Q2 is considered priced in with no large moves expected either way. FWIW on the backend (i.e., Tradytics option flow data) is leaning bearish for July.

 

[Max Plaid]

Task for next week is finding a new broker… having it take THAT long to regain access to an account seems totally unacceptable..isn’t there 2FA, “voice is my passport”, identity verification that could have brought access faster? Although, i guess one could always call it in as we discussed.

Yeah, it's kind of odd that I can call and identify myself with a set of questions and answers, but this isn't enough to reactivate... also, OK, they want to send computer generated codes that a human can't intercept to hack the account, but what about and an encrypted email to the address that have on record, etc...

Anyway, I don't shout too loud as I landed myself in this scenario

 

[Max Plaid]

Did you take a look at Bolero (KBC) yet? It can be slow sometimes (not a lot), but it's a good app.

No, I've always been with Keytrade and generally happy with them. The app is basic, no complex orders, but they also don't interfere at all regarding my portfolio composition or risky trades, as long as I'm not over-committing cash or margin they don't care, which is great

 

[tivoboy]

Yeah, it's kind of odd that I can call and identify myself with a set of questions and answers, but this isn't enough to reactivate... also, OK, they want to send computer generated codes that a human can't intercept to hack the account, but what about and an encrypted email to the address that have on record, etc...

Anyway, I don't shout too loud as I landed myself in this scenario

Well, technically there is no way to send an “encrypted email” between to different domains and accounts unless that sort of end to end encryption was setup prior, and you would know that since it’s a PIA to setup. Some institutions WILL send a link to a sort of ‘secure’ WEBMAIL type of environment for mostly single use transmission.

I still have number lists from banks in Germany and Switzerland and Singapore that are single use, which is always my fall back in the event that something happens to authentication. All the lists were verified with 5FA when sent and received, so they are considered uncomprimised at this point.

I recall over two decades ago at least that I had an RSA dongle for my eTrade account, maybe one other company as well. Frankly with the ease of implimentation and availability of Authenticator devices and apps on cell phones I don’t know why more institutions don’t put this in place for users who WANT it, understanding that probably the majority won’t want the initial hassle to setup. That’s fine, but it’s quite easy to integrate and incorporate into a modem operating environment.

I will say, the ONLY reason I have kept my eTrade account (probably less than 5% of trades and value) at this point is access to international markets with currency exchange and access.. how else can one really buy NINTENDO

 

[dl003]

Well @dl003 you were right after all that TSLA will visit $230’s by June 30. I wish I had the patience and conviction to hold my short calls (-C265, -C230, etc.) instead of rolling them in a panic to -C500 12/2025 and incurring a -$450,000 paper loss as I wait—but I know it’s only clear in hindsight. It could have also continued to $314 and taken longer to revert to the mean. It’s all good and all for the best.

Are your charts telling you anything new going forward that you can share with us?

Looks like the daily uptrend support @ 238 scared the bears away, for now. I don't think we will close any day below 238 before P&D but I might be wrong. If P&D is a miss, we might break it and test the 217 level. Unless it is a disastrous miss, I think 217 should hold till ER. Depending on how the stock behaves at 217, we'll know if it's still going to 300+ or back down to 100.

 

[Max Plaid]

Well, technically there is no way to send an “encrypted email” between to different domains and accounts unless that sort of end to end encryption was setup prior, and you would know that since it’s a PIA to setup. Some institutions WILL send a link to a sort of ‘secure’ WEBMAIL type of environment for mostly single use transmission.

I still have number lists from banks in Germany and Switzerland and Singapore that are single use, which is always my fall back in the event that something happens to authentication. All the lists were verified with 5FA when sent and received, so they are considered uncomprimised at this point.

I recall over two decades ago at least that I had an RSA dongle for my eTrade account, maybe one other company as well. Frankly with the ease of implimentation and availability of Authenticator devices and apps on cell phones I don’t know why more institutions don’t put this in place for users who WANT it, understanding that probably the majority won’t want the initial hassle to setup. That’s fine, but it’s quite easy to integrate and incorporate into a modem operating environment.

I will say, the ONLY reason I have kept my eTrade account (probably less than 5% of trades and value) at this point is access to international markets with currency exchange and access.. how else can one really buy NINTENDO

Sorry for this OT discussion, but the broker already gave me a code over the phone that needs to be used in conjunction with the codes sent in the post, so technically speaking they could send those other codes via an unencrypted email, they're useless without the other - which might indeed be a one-time encryption

Anyway, it is my own fault, since you have the app setup and the login working, you can install on other phones as a backup, which is what I'd done with Amy wife's phone. However, she got a new iPhone recently and I hadn't got around to reinstalling, so, yeah... when I'm up-and-running again I will install on a spare iPhone I have in a drawer and that isn't used for anything else

Back onT: TSLA fell because US is thinking about restricting chip exports to China...??

 

[juanmedina]

It is Wednesday and IV looks low to me for being a P&D week. Any thoughts? I am thinking about selling some ATM puts I might wait until tomorrow.

 

[CHGolferJim]

Had some rolls planned anticipating a MMD, but no………

 

[Max Plaid]

Well, maybe being locked-out of the broker isn't always bad thing, those 3000 TSLA put at 260 not looking so bad now, I would have sold -c250's earlier this week had I been playing...

But for sure I missed a good rolling opportunity for my -c200's, meh!

And no login codes today as there's a national strike in Belgium, so no postal service...

 

[BornToFly]

Of course, I wanted to scalp a little more for this week, and sold naked 287.5 calls for Friday for 0.1 near the open.
SP up over 3% since then....