Wiki Selling TSLA Options - Be the House

[elasalle]

Pulled Jan 24 450 CC's to jan 24 400 CC and got myself another 14 shares.
Right now 400 feels safe, after Sept will decide if should pull up more to Jan 24, 350 strikes ....
cheers!!

*got the idea, and then decided to be a bit more aggressive for now with my Dec 25 250 Calls, so for the CC's against them, rolled/pulled up to Jan 24 360 CC's ... and got myself another 115 shares ... lovin it (couldn't keep my hand off the cookie jar )

 

[intelligator]

At the dip, BTC 8/4 -c260 for 25% to reposition at a better premium.

260-270 seems to be the range for the week, OI added below and above 262.5 , hmmm , about where we sit now.

Gamma exposure is trending down from yesterday, also setting stage for mid 260s end of week.

 

[CHGolferJim]

Paid debit of $1883 to recover $14,000 in unrealized capital gains on DITM CC:

• rolled 4Aug$300 to 15Sep$300 for $5.71 credit
• rolled same number of 4Aug$215 to 20Oct$235 for $8.40 debit
• reclassified some 25Aug$300 for potential assignment / sale of shares

 

[UltradoomY]

STO 10/20 - $315C's for $8 earlier
STO 10/20 - $225P's for $8 as well

Just getting some sushi money and taking the premium for a rainy day right now -

 

[Max Plaid]

After some deliberation, took advantage of this dip and free rolled BTC 80x 10/20 -c200 -> STO 57x 9/20 -c200

Rationale - I recuperate >+$20 per contract that were originally sold in the high $80's, removes the risk of further realised losses on those in this fiscal year, gives me 12 months longer to buy them back and frees-up 27x LEAPs for selling weeklies (with premiums then used in theory to close out more of those -c200's)

So was 150x -c200 a couple of months back, now down to 57x

In play for this week still:

50x -c250
45x -c260
30x -p260

Limit sell order for 30x 8/11 -c275 @$3.1 in place, this price was hit at 15:09, but only briefly and must have been other orders before me as it didn't trigger

Edit: oops, was an error to try and sell 27x -c275's, should have been 23x, of course... adapted the order and lowered the limit to $2.9 which then hit

 

[Jim Holder]

STO 30x -C287.50 8/11 @ $1.10

TSLA doesn’t have 21-day Stoch>60 on the hourly and daily, plus overall price action suggests we either go lower or just drift around here in the $260’s for some time.

Yes I could probably get more premium if I wait for a recovery to $265-270 but I’ve tried that all day and watched it drift from $269 to $261. Plus $3.3k is enough for me for waiting a week with some risk (though I have the shares to cover it should it go ITM).

I plan to BTC at $255 or wherever TSLA sinks down to and/or let it run to next Friday.

$287.50 is a far way off from here for 8 trading days, including all the resistances in between (famous last words…).

 

[Max Plaid]

STO 30x -C287.50 8/11 @ $1.10

TSLA doesn’t have 21-day Stoch>60 on the hourly and daily, plus overall price action suggests we either go lower or just drift around here in the $260’s for some time.

Yes I could probably get more premium if I wait for a recovery to $265-270 but I’ve tried that all day and watched it drift from $269 to $261. Plus $3.3k is enough for me for waiting a week with some risk (though I have the shares to cover it should it go ITM).

I plan to BTC at $255 or wherever TSLA sinks down to and/or let it run to next Friday.

$287.50 is a far way off from here for 8 trading days, including all the resistances in between (famous last words…).

I went with -c275 as I'm of the understanding that $274 is pretty strong resistance... will probably roll this week's -c260's up to there too, leave the puts a 260, $2 - $3 per week I'm looking for right now, which is around 5% OTM

The -c250's I might just leave there for the moment, see if we dip from here, don't know yet

 

[tivoboy]

STO 30x -C287.50 8/11 @ $1.10

TSLA doesn’t have 21-day Stoch>60 on the hourly and daily, plus overall price action suggests we either go lower or just drift around here in the $260’s for some time.

Yes I could probably get more premium if I wait for a recovery to $265-270 but I’ve tried that all day and watched it drift from $269 to $261. Plus $3.3k is enough for me for waiting a week with some risk (though I have the shares to cover it should it go ITM).

I plan to BTC at $255 or wherever TSLA sinks down to and/or let it run to next Friday.

$287.50 is a far way off from here for 8 trading days, including all the resistances in between (famous last words…).

Any thoughts of either buying or selling a 8/11 240 or 245 put? buy, could probably double your money if you manage them both equally, sell - well possibly put but at that price i‘d probably go long for a month or two.

 

[Jim Holder]

Any thoughts of either buying or selling a 8/11 240 or 245 put? buy, could probably double your money if you manage them both equally, sell - well possibly put but at that price i‘d probably go long for a month or two.

Definitely something to think about. I’m pretty extended with CSP’s so I need to be careful putting on any new ones so I keep my account safe. But yes I may buy some 8/11 $240 puts if we see more weakness. 260 held so far, I’d like to see it taken out before giving the house $$ to buy puts. Will be watching tomorrow for sure.

Edit to add visual for 8/11 +P240:

Error 404

optionstrat.com

+P245:

TSLA Aug 11th 245 Long Put (example) | OptionStrat

View my options strategy on OptionStrat

optionstrat.com

Need to go closer to the money to make it worthwhile before Theta chumps it down.

 

[Jim Holder]

Some useful option positioning data to inform current sentiment and trade ideas:

https://twitter.com/x/status/1686519906454659072

 

[Max Plaid]

Markets dumped quite hard AH, I think the reason is this:

Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” an erosion of governance and a growing general debt burden.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” said Fitch.

 

[SpeedyEddy]

Finally, rolling -CC 240’s seems to get payed out this week or next week.
(Am short AI.C3 and RIVN too)

 

[intelligator]

Wow, much different action than 31st to 1st. Slight OI pullback at P245, increases at C260 and above. I have -p252.5 for the 4th, will watch closely and buy back if downward pressure continues.

 

[intelligator]

BTC -p252.5 at approx 20% loss while at 259 and RSI broke 70.

 

[Max Plaid]

To close or not to close, that is the question (-c250’s & -c260’s), still plenty of extrinsic to drain out…

 

[ReddyLeaf]

BTC -p252.5 at approx 20% loss while at 259 and RSI broke 70.

To close or not to close, that is the question (-c250’s & -c260’s), still plenty of extrinsic to drain out…

Edit: and market is dropping further while this post was being written. Glad I got out.

Spent the early morning hours closing out all spreads, unfortunately not all well-timed or profitable. I don’t like the feeling I’m getting from the US credit rating drop, Ukrainian war, and near term open put options. As it was, I had too much exposure to -p260s, -p255s, and -p252s. I’m still net short and have all my shares committed to -CCs of various strikes and duration from 8/18 -c260s to Jan2025 -c300s. I was starting to get to my “sleeping limit” and therefore will wait out the next few weeks before buying back any CCs. Wicked Stocks still indicates a good possibility of testing the 200-220 rising support line, which aligns with the Sept p210s/p220s open interest. Perhaps I should consider buying a similar put spread.

FYI, there was a lot of funny business on options pricing today (e.g. wasn’t able to close SINGLE contract BPS, BCS, or IC spreads even $0.02-$0.05 above midpoint). Finally, I started splitting the orders into single trade market orders (e.g. BTC -p, then STC +p as the SP was dropping, followed by BTC -c then STC +c as the SP was rising). Definitely a lot more work, especially with multiple accounts and spreads. Not something that I’m happy about and a definite difference from my previous brokerage, which I very much liked but did not allow multi-leg rolling.

 

[elasalle]

cycled back some shares to jan 25 300 calls to take adv of the dip(hope so), and sold some CC's against.

Next up CPI print Aug 10th ...

 

[Jim Holder]

FYI, there was a lot of funny business on options pricing today (e.g. wasn’t able to close SINGLE contract BPS, BCS, or IC spreads even $0.02-$0.05 above midpoint). Finally, I started splitting the orders into single trade market orders (e.g. BTC -p, then STC +p as the SP was dropping, followed by BTC -c then STC +c as the SP was rising). Definitely a lot more work, especially with multiple accounts and spreads. Not something that I’m happy about and a definite difference from my previous brokerage, which I very much liked but did not allow multi-leg rolling.

I’ve noticed this too with TD Ameritrade. Spreads would fill all contracts but hang on 1 contract left and not finalize the fill. After trying this a few times I split the ticket instead and did each leg separately and it filled right away.

 

[adiggs]

Rolled -250p expiring this week (.20ish time value) to -245p in 2 weeks (8/18). $5 strike improvement and a $3.20 credit - a winning combination.

I still have the -250p expiring 8/11, and am looking for some of these csp to be assigned. As long as we're drifting down and I can roll for both strike improvement and significant credit I'll do that and just buy shares at some point to enable cc sales.

More generally I prefer using assignment for either puts or calls as the fallback to simply buying and selling shares when I consider the moment opportune. Especially when purchasing shares vs. taking assignment on short puts. In that spirit, although buying shares at 250 doesn't bother me, I also consider it a middling price, and am looking for more like 230 to buy shares.


I am expecting a month and a half of little or no company news that would get people excited to bid the share price up, and that leads to a month and a half of more down than up, but not an exciting amount of either going on. I like sideways and down for a month and a half - some 200 strike cc's are looking for help (and getting it right now).

It seems like share price is weakening, so I'm thinking more down than up for now.

 

[adiggs]

I’ve noticed this too with TD Ameritrade. Spreads would fill all contracts but hang on 1 contract left and not finalize the fill. After trying this a few times I split the ticket instead and did each leg separately and it filled right away.

When bid/ask is small, especially .01-.03, I like splitting spreads up into individual legs and doing market orders. One of the weaknesses of a spread ticket is that it trades at your price or it doesn't trade - I've never seen my price get improved anyway. I am pretty sure that I regularly set my price "wrong" (share price moving on me while I'm filling out the ticket), and I give away money.

I've also seen plenty of situations where the spread doesn't fill, but the individual legs fill immediately - even using limits, and even when the combination meets the spread price and the leg orders are entered right on the heels of each other.

I think my pattern amounts to entering positions via spread orders, and then exiting winning positions via single leg market orders. I'm not stuck on this - just how things work out in practice.