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Wiki Selling TSLA Options - Be the House

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Question:
I have 60x -C500 12/2025 that are now almost @40% profit. I got $248k from opening them back in June which went 100% to BTC -C that were at risk in the June run. It’ll cost $154k to BTC today. I don’t have that amount liquid so I just have to sit on my hands.

The contracts might anyway expire OTM at expiration, so maybe sitting and doing nothing is all I can do, and even if goes ITM it’s decent gains for the 6,000 shares @ $328 CB.

My question is, is there any clever way to capture the $93k gains before it disappears on the next run?

For additional context, I have:
6,000 shares ($328 CB)
11x -P300 12/2025 (received avg. $91.75/ea)
6x +C150 12/2025 (paid avg. $159.75/ea)
And am 100% margin free and looking to stay that way.

View attachment 964790

Columns: Today’s price | DTE | Gains | Opening price
As you know, I've been picking-off my short LEAPS gradually over the last couple of months, but in hindsight would have been better to keep the weekly premiums and then wait for a pull-back to close them out, but you just can't predict this, can you... if you're looking just to realise some paper gains then you could buy and resell, but if you want to keep the cash in the bank that won't help much
 
Question:
I have 60x -C500 12/2025 that are now almost @40% profit. I got $248k from opening them back in June which went 100% to BTC -C that were at risk in the June run. It’ll cost $154k to BTC today. I don’t have that amount liquid so I just have to sit on my hands.

The contracts might anyway expire OTM at expiration, so maybe sitting and doing nothing is all I can do, and even if goes ITM it’s decent gains for the 6,000 shares @ $328 CB.

My question is, is there any clever way to capture the $93k gains before it disappears on the next run?

For additional context, I have:
6,000 shares ($328 CB)
11x -P300 12/2025 (received avg. $91.75/ea)
6x +C150 12/2025 (paid avg. $159.75/ea)
And am 100% margin free and looking to stay that way.

View attachment 964790

Columns: Today’s price | DTE | Gains | Opening price

It’s not staying margin free, but flipping some calls to puts means you keep the gain on the calls in exchange for puts that are way up since we flirted with 300 a few weeks back.
 
It’s not staying margin free, but flipping some calls to puts means you keep the gain on the calls in exchange for puts that are way up since we flirted with 300 a few weeks back.
That’s an interesting idea. I don’t think it will use margin, though it will hold some cash in reserve for the sold puts. Is that what you meant?

Edit: Maybe better play is selling more -P300 12/2025 and using the proceeds for buying +C150 12/2025 (than BTC -C500 12/2025)?
 
Last edited:
That’s an interesting idea. I don’t think it will use margin, though it will hold some cash in reserve for the sold puts. Is that what you meant?

Edit: Maybe better play is selling more -P300 12/2025 and using the proceeds for buying +C150 12/2025 (than BTC -C500 12/2025)?

Yes, that’s what I meant - because potential margin can become real margin before you know it.

Either opening 150s or closing 500s will “capture” the gains from this drop, at the risk of being more leveraged with the put if we drop further.
 
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Yes, that’s what I meant - because potential margin can become real margin before you know it.

Either opening 150s or closing 500s will “capture” the gains from this drop, at the risk of being more leveraged with the put if we drop further.

Thanks.

STO 1x -P300 12/2025 for $9.5k premium
BTO 1x +C150 12/2025 for $12.4k premium using the cash from the sold put and some gains from last week's trades.

Sitting on the 60x -C500 12/2025 for now. If we drop more then I'll revisit.
 
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Just visiting from the TMC Fight club thread...

Aren't China's economy issues the biggest, most likely 800 pound gorilla in the room most likely to make the market drop dramatically, yet we're not discussing it here nor anywhere on TMC?

Nobody want’s to discuss that narrative openly or objectively (in other areas) as it’s a big red flag for Tesla earnings and growth. Much like being open and honest about FSD viability and revenue contribution in the near-medium term. So, all I can say is lets don’t cross the streams here where it seems ppl are much more openly objective about at least short to medium terms impacts and how that informs making $$ and great trades. ;-0
(responding to both)
The question for us to be thinking about regarding China's economic issues, for the purpose of this thread, is the impact on the time scale most of us are working with. Seems like we are overwhelmingly in the 2 day to 2 week trading range - how big of an impact is some news out of China likely to have on this scale? It's a serious question that each of us should be thinking about.

Bringing up the possibility that China's economic situation has become a significant source of a big short term movement - that's a black swan source that is good to have in hand.

Do you have some particular information / article / reference that you are thinking of? Do you have reason to think something will break "soon" - maybe the next month or 2?

Considering @Right_Said_Fred contribution, maybe a more general and encompassing post in the main thread, or even a new thread, and then posting a link here.

I know I would like to learn more - I've read enough to think there might be a fire smouldering in there, but not enough to do anything useful.


As you know, I've been picking-off my short LEAPS gradually over the last couple of months, but in hindsight would have been better to keep the weekly premiums and then wait for a pull-back to close them out, but you just can't predict this, can you... if you're looking just to realise some paper gains then you could buy and resell, but if you want to keep the cash in the bank that won't help much
For everybody rolling positions, buying back losers a few at a time, and otherwise handling DITM positions - understanding the nuances of what @Max Plaid has to say is important. There isn't a right and wrong way to take of those positions - there are only choices and consequences.

There is timing of realized gains and losses; timing of cash flow; ability to forecast the future. A whole bunch of stuff is all wrapped together in here, and this is stuff that you are consciously or unconsciously making tradeoffs as you work through these positions.
 
Question:
I have 60x -C500 12/2025 that are now almost @40% profit. I got $248k from opening them back in June which went 100% to BTC -C that were at risk in the June run. It’ll cost $154k to BTC today. I don’t have that amount liquid so I just have to sit on my hands.

The contracts might anyway expire OTM at expiration, so maybe sitting and doing nothing is all I can do, and even if goes ITM it’s decent gains for the 6,000 shares @ $328 CB.

My question is, is there any clever way to capture the $93k gains before it disappears on the next run?

For additional context, I have:
6,000 shares ($328 CB)
11x -P300 12/2025 (received avg. $91.75/ea)
6x +C150 12/2025 (paid avg. $159.75/ea)
And am 100% margin free and looking to stay that way.

View attachment 964790

Columns: Today’s price | DTE | Gains | Opening price
If it was me, I'd drag them to the farthest corner of my screen and forget about them until 6/2024. NTA.
 
(responding to both)
The question for us to be thinking about regarding China's economic issues, for the purpose of this thread, is the impact on the time scale most of us are working with. Seems like we are overwhelmingly in the 2 day to 2 week trading range - how big of an impact is some news out of China likely to have on this scale? It's a serious question that each of us should be thinking about.

Bringing up the possibility that China's economic situation has become a significant source of a big short term movement - that's a black swan source that is good to have in hand.

Do you have some particular information / article / reference that you are thinking of? Do you have reason to think something will break "soon" - maybe the next month or 2?

Considering @Right_Said_Fred contribution, maybe a more general and encompassing post in the main thread, or even a new thread, and then posting a link here.

I know I would like to learn more - I've read enough to think there might be a fire smouldering in there, but not enough to do anything useful.



For everybody rolling positions, buying back losers a few at a time, and otherwise handling DITM positions - understanding the nuances of what @Max Plaid has to say is important. There isn't a right and wrong way to take of those positions - there are only choices and consequences.

There is timing of realized gains and losses; timing of cash flow; ability to forecast the future. A whole bunch of stuff is all wrapped together in here, and this is stuff that you are consciously or unconsciously making tradeoffs as you work through these positions.
Once again, graybeard Adiggs comes to the rescue with sage advice.
STO 1x -P300 12/2025 for $9.5k premium
BTO 1x +C150 12/2025 for $12.4k premium using the cash from the sold put and some gains from last week's trades.

Sitting on the 60x -C500 12/2025 for now. If we drop more then I'll revisit.
So, is that a fully cash-secured put? $30k tied up until 12/2025? If so, I think there are better alternatives. As I’ve been posting, my 1-2 DTE ICs are generating 5-10% weekly, With wider spread, one could easily generate 1-2% at minimum risk. Let’s just assume 30x ICs +p210/-p220/-c260/+c270 are about $0.50 for $10 risk, 5% return. Maybe need to tighten a bit more for 5%. Time the BPS and BCS sales and generate a bit more. If one can repeat that weekly, it would generate $6k/mo, enough to close 2x of those 12/25 -c500s. Too risky? Then spread it out farther, and only close 1x/mo.

As for whether to even bother closing the -c500s, I would be extremely happy to have such OTM CCs, and would hold them to Jan2025 as a hedge. I would love to be “worried” about losing my shares at $500, instead of the -c300s that I have. YMMV.
 
Once again, graybeard Adiggs comes to the rescue with sage advice.

So, is that a fully cash-secured put? $30k tied up until 12/2025? If so, I think there are better alternatives. As I’ve been posting, my 1-2 DTE ICs are generating 5-10% weekly, With wider spread, one could easily generate 1-2% at minimum risk. Let’s just assume 30x ICs +p210/-p220/-c260/+c270 are about $0.50 for $10 risk, 5% return. Maybe need to tighten a bit more for 5%. Time the BPS and BCS sales and generate a bit more. If one can repeat that weekly, it would generate $6k/mo, enough to close 2x of those 12/25 -c500s. Too risky? Then spread it out farther, and only close 1x/mo.

As for whether to even bother closing the -c500s, I would be extremely happy to have such OTM CCs, and would hold them to Jan2025 as a hedge. I would love to be “worried” about losing my shares at $500, instead of the -c300s that I have. YMMV.
When you say 1-2 DTE ICs, does that mean you're selling them on Wed/Thur for a Fri expiration? Any rule of thumb on how far OTM to go on both sides?
 
Welps. Is it time to buy call options yet?
I am not ready to buy calls yet - I am waiting till September - or if we drift below $200.

I think we will be sub $225 before end of month - Positioning accordingly

Open positions right now are 08/17 - $230P and 09/15 $230P's all bought last week.

Right now also selling calls on Friday - for ATM and closing on Wednesday
This week $250's opened for $5 each - now at $0.40 each.

Will continue until reversal - selling ATM calls - buying 10% OTM puts a week in advance.


In September I will be looking to pick up the New January 2026 Leaps - looking at the $200 strikes -
 
I am not ready to buy calls yet - I am waiting till September - or if we drift below $200.

I think we will be sub $225 before end of month - Positioning accordingly

Open positions right now are 08/17 - $230P and 09/15 $230P's all bought last week.

Right now also selling calls on Friday - for ATM and closing on Wednesday
This week $250's opened for $5 each - now at $0.40 each.

Will continue until reversal - selling ATM calls - buying 10% OTM puts a week in advance.


In September I will be looking to pick up the New January 2026 Leaps - looking at the $200 strikes -
Are you expecting minimal impact on SP of 3Q P&D and ER?
 
thinking it might be the moment to flip to strangles, eyeing -p230 & -p240 for next week… tried to stick with -240 1:2 ratio straddles thinking this drop is on the back of nothing and could reverse a bit at any given point

Don’t know! Maybe just selling calls it’s the best approach until a reversal…

Meh! Can’t do anything today except watch ad I’m driving home from Copenhagen. I guess WS wasn’t impressed with the lower ravnge S&X?
 
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