Wiki Selling TSLA Options - Be the House

[ReddyLeaf]

Decently profitable week, closing out +p235/-p245/-c267.5/+c277.5 ICs for $0.01 (BPS) and $0.02 (BCS) sides. Unfortunately, it was an exceedingly frustrating week trying to mitigate issues with brokerage and ITM options rolled during the previous SP surge. My brokerage kept mis-pairing options while I was rolling BPS and BCS pairs separately. I was in BPS, BCS, IC, IB, inverted whatchies, and some short box spreads, things I didn’t even know existed. Ultimately, they somehow managed to create a naked short call and unpaired shares (all of this in a US IRA retirement account that doesn’t allow such positions). Of course, this locked up my account twice (Wednesday and Thursday), so I was unable to close out positions just like @Max Plaid. Fortunately, Friday morning they figured it out, and briefly allowed me to close the naked call, thus restoring internet trading access. I then proceeded to close the weird spreads, and about half the others, leaving just simple IC or IB spreads for 7/7, 7/14, 7/21, and 7/28. Still not entirely happy with the results, but will endeavor to only have a single spread in any one week, in each account.

Here are the current July positions:
IV crush play: 7/07 IC +p220/-p230/-c300/+c310 $0.90 cr
IV crush play: 7/07 IC +p225/-p235/-c300/+c310 $0.97 cr
7/07 IC +p245/-p255/-c270/+c280 $6.29cr (previous “fix”)
7/14 IB +p260/-p275/-c275/+c290 $11.68 cr (previous “fix”)
7/14 IB +p245/-p255/-c255/+c265 $8.57 cr (previous “fix”)
7/21 IC +p250/-p270/-c280/+c300 $14.37 cr (previous “fix”)
7/21 IB +p265/-p280/-c280/+c295 $10.22 cr (previous “fix”)
7/28 IC +p250/-p270/-c290/+c310 $13.34 cr (previous “fix”)

Definitely not happy with most of these positions, since they are attempts to fix previous trades that went bad (dITM). Problematic if the SP drops during a bear raid between P/D and Earnings, but will deal with each week as they get closer. Still have CCs at June 2024 -c225s, -c290s, -c300s, Jan2026 -c200s,-c260s, Mar2024 -c270s, and Oct2023 -c300s that will act as a hedge against a future bear raid (see Elon’s recent tweets about margin borrowing and cage fighting).

In more useful news, note Friday’s largest trades; rolls, bullish and bearish spreads, about 50:50. I can’t tell from the prices whether the blue highlighted spread is bearish or bullish. From net delta, it looks like more call buying than puts.

Edit: still waiting/expecting the bears to close that $235 gap at the 0.618 Fibonacci level.

 

[Max Plaid]

BOOM!

 

[Cherry Wine]

I don't know how the market will take these numbers, but I feel better being positioned to the upside than the downside going into tomorrow, that's for sure.

 

[juanmedina]

Rip my shares.

 

[Cherry Wine]

Rip my shares.

Is a 4% beat really going to have TSLA rip higher? I'm not so sure.

 

[MikeC]

Is a 4% beat really going to have TSLA rip higher? I'm not so sure.

We’re in an uptrend and this somewhat invalidates the demand fears which is really what fundamentally brought the SP down. More deliveries means higher margins at same ASP. If the growth story is intact, we deserve a higher multiple in addition to the improved EPS/share.

And with this continually improving sentiment, we could get all the FOMO and gamma squeezing back like we used to have. It’s hard to shake the memories of 2022 and get out of the “disbelief” phase of the cycle, but to me this is starting to feel like the good old days again.

Pretty amazing how I managed to buy calls all the way down in 2022 and then I started selling them on the way up. But all in all very happy for my long position and looking forward to seeing what happens on the short day tomorrow.

 

[SebastienBonny]

Not too sure about more upside here.
Multiple is already pretty high now imo.
Earnings are more important right now to see how margins are.

Wouldn’t be surprised seeing sell the news tomorrow.

 

[Cherry Wine]

We’re in an uptrend and this somewhat invalidates the demand fears which is really what fundamentally brought the SP down. More deliveries means higher margins at same ASP. If the growth story is intact, we deserve a higher multiple in addition to the improved EPS/share.

And with this continually improving sentiment, we could get all the FOMO and gamma squeezing back like we used to have. It’s hard to shake the memories of 2022 and get out of the “disbelief” phase of the cycle, but to me this is starting to feel like the good old days again.

Pretty amazing how I managed to buy calls all the way down in 2022 and then I started selling them on the way up. But all in all very happy for my long position and looking forward to seeing what happens on the short day tomorrow.

I'd be really happy with a rally tomorrow through the 19th, but I think it sets up an opportunity for a sell the news at earnings. Interesting times.

 

[BornToFly]

I'm predicting 300+ before ER (maybe even this week).

(I'm usually wrong)

 

[SebastienBonny]

I'm predicting 300+ before ER (maybe even this week).

(I'm usually wrong)

We'll see who's wrong or right today .

 

[chrsk]

We'll see who's wrong or right today .

A 6% jump in pre-market and Im still not sure if the day ends in green or red. Gotta love TSLA

 

[Right_Said_Fred]

I'm predicting 300+ before ER (maybe even this week).

(I'm usually wrong)

But what to think of Elon warning again on Friday not to buy the stock on margin? Does he know something (about car margins) which we don't know? Or is he just repeating what he seems to be tweeting once or twice a year?

https://twitter.com/x/status/1674895208549347328

 

[intelligator]

P250 (+ P245,P245,P255) and C285 (+C282.5) OI increased. Thinking we'll close the week mid to high 260's once the P&D dust settles.

 

[saniflash]

But what to think of Elon warning again on Friday not to buy the stock on margin? Does he know something (about car margins) which we don't know? Or is he just repeating what he seems to be tweeting once or twice a year?

https://twitter.com/x/status/1674895208549347328

With the benefit of hindsight bias (I was really concerned about P&D after reading the tweet beforehand), I'd like to think he wants to caution retail traders to not get caught in the euphoria post-P&D.

Furthermore, what has me thinking: Elon is usually a stickler for small details and words/formulations. In his tweet, he uses "variability" instead of "volatility" (which imho would be the right word to use in this context). I'm asking myself why?

 

[Max Plaid]

But what to think of Elon warning again on Friday not to buy the stock on margin? Does he know something (about car margins) which we don't know? Or is he just repeating what he seems to be tweeting once or twice a year?

https://twitter.com/x/status/1674895208549347328

I'd say there's a 50/50 chance of margins being lower in Q2 compared to Q1 and that might trigger a pull-back, or maybe we get CT delay, who knows - maybe the FEDiots actually go and raise rates again, twice, could happen

Generally though I think it's just wise words form Elon to anyone speculating in the markets, beware margin

I'l still locked out of my account, waiting for the Belgian postal service to pull their heads out of their behinds and do their job... not sure I'd trade today anyway and then we're closed until Wednesday

Still holding 30x -260 for this week. Assuming the SP stays up around 280, then I need to see whether to roll, or not. Thinking to buy 100x Dec +p200's as a safety-net, then sell 30x weekly -pATM, the idea being if the SP does correct then I can roll down to 200 and add contracts along the way

For sure, rolling -c200's up from here is not as easy as it was last week, so the post service has cost me money there

 

[myt-e-s-l-a]

1) Bought 1000 tsla shrs pre market $ 276.00
and sold CC.

Buy tsla 1000 shr @ 276.00 premarket
and
STO -10x CC tsla 230707C80 @8.20

for credit $8.20



2) Rolled another CC position c255 to c280 with longer time expiration

BTC -10x CC tsla 230707C255 @ 24.50
STO -10x CC tsla 230721C280 @ 16.85

for debit $7.65

 

[Knightshade]

I just sold CC$300s for Friday on everything soon after open... probably overly conservative, but already at ~30% profit in 2 hours and seems (famous last words) very safe as ~280 has been strong resistance, plus I'd expect significant profit taking at 300 if we got there.... (and this'd always be rollable to past ER if needed)

 

[juanmedina]

I rolled my $225-215cc sideways to next week for a $0.30 credit . Decent rolls while improving the strike significantly for a credit will lock my shares for over a year and I am not a fan of that. I am not sure what to buy next if my shares get call away. Even an ETF like VTI seems expensive at the moment and it is already almost +16% for the year.

 

[Knightshade]

I just sold CC$300s for Friday on everything soon after open... probably overly conservative, but already at ~30% profit in 2 hours and seems (famous last words) very safe as ~280 has been strong resistance, plus I'd expect significant profit taking at 300 if we got there.... (and this'd always be rollable to past ER if needed)

Well I'd put in a limit order at 50% profit and it surprisingly already triggered so that was quick
(~1.80 sh vs ~.90 a share respectively)

 

[treb]

I'm trying to STC a June2024 300C on ToS, but can't find a buyer. I have a limit order that's 50 cents under the bid price ($1 under the mid point) but no takers. I don't really want to enter a market order and not know in advance what price I'm going to get, but I don't really want to go lower on my limit order.