Wiki Selling TSLA Options - Be the House

[Max Plaid]

BTC 60x -c250 for pennies, STO 30x -c230 "on the pop", you're welcome...

Still holding 30x -p250 & 30x -c240, this new sell covers me down to $225 - the 230 calls are fairly low risk, if the SP goes up from here the gains on the puts will cover the losses on the calls, obviously caps any potential gains too, but I'm more worried about the downside right now

I enjoyed the opening 10 minutes, now let's see what happens...

 

[bkp_duke]

Hi everyone! I’m new here. Great forum and clearly lots of impressive knowledge on trading Tesla. I write weekly CCs and CSPs myself. I do have a few Jan ‘25 leaps at 300 strike that I need the stock to be 350 to make money. Anyone still holding leaps like this? Or are you rolling to Dec. ‘25 for example? I got underwater fast on these…

I'm holding a stack of leaps like this. There is a lot of time left on them, I intend to hold them for at least 6 months longer and not act on them, not unless the stock surpasses 400.

 

[elasalle]

Rolled my Oct PUTS to Jan 24,
Added far OTM Dec 25 500 calls ... for the reversal, big leverage.....

Hi everyone! I’m new here. Great forum and clearly lots of impressive knowledge on trading Tesla. I write weekly CCs and CSPs myself. I do have a few Jan ‘25 leaps at 300 strike that I need the stock to be 350 to make money. Anyone still holding leaps like this? Or are you rolling to Dec. ‘25 for example? I got underwater fast on these…

My Jan 25 250 Calls went from 79 to 20 (held) back to 90 and again dropped.
It all depends on your % of portfolio, strategy and belief in where Tesla stocks will be in a few mths.

 

[juanmedina]

I feeling like buying LEAPs.... how low can this go?

 

[SpeedyEddy]

Hi everyone! I’m new here. Great forum and clearly lots of impressive knowledge on trading Tesla. I write weekly CCs and CSPs myself. I do have a few Jan ‘25 leaps at 300 strike that I need the stock to be 350 to make money. Anyone still holding leaps like this? Or are you rolling to Dec. ‘25 for example? I got underwater fast on these…

Planning on more LEAPS as far away as possible, a bit out of the money as cheap kinda shares to buy next week founded with some -P ATM for the same date and some money still on the sideline and momentarily invested in other stocks, that have dropped less.

 

[tivoboy]

I feeling like buying LEAPs.... how low can this go?

We’re currently just about in an air pocket, so another 15-20 pts is not out of the question.. VERY strong support is at ~ $205 (but there is nothing in between), sub $212-210 would probably see some significant buying and short term rise back to these levels but then most likely retest that $205 level. I will def start to add to a new position ~ $210 and accelerate down to $205/200

 

[MikeC]

Finally sold 230c for this week - it’s the only way I know to make the stock price come back up. Just too agonizing watching the stock drop and drop and not be holding CCs. Also added another 12/25 +c250.

 

[tivoboy]

Finally sold 230c for this week - it’s the only way I know to make the stock price come back up. Just too agonizing watching the stock drop and drop and not be holding CCs. Also added another 12/25 +c250.

Thank you for your sacrifice..
This week that could be good, IF we were trading this way NEXT week I would have caution for anything for 8/23/23 when NVDA reports AFTER THE BELL.. they could report in line, beat or beat and raise and pull EVERYTHING up in the aftermarket FRIDAY, and a call ITM or slightly ATM would most likely have stock called away. It’s a needle I rarely thread unless I’m SUPER confident of my underlying not being disproportionately impacted by another major stock.

NVDA, it’s ALL about AI
TSLA - has moved to a LOT of “AI this and AI that” promoting, CEO speak and it would get swept up again I think in a re-accelerating AI narrative If that is what NVDA tries to report.

 

[ReddyLeaf]

So what happened today? I’m out on the road and you guys dropped the ball here. Damn, I wasn’t expecting $230 until next week. Now some of my BPS are fully ITM. Oh well, I’ll take the loss tomorrow and roll everything down and out. Those -c225s LEAPS are much happier. Definitely wish I had bought puts last week, last month.

Took my lumps, closed out all of this week’s ITM spreads. Definitely NOT profitable this week (yet), that’s the problem with spreads and being so close to ATM. These were rolled from last week, against my 1-2 DTE rule, so the results are not unexpected.

To mitigate the losses, I tried a couple different strategies: 1) rolled 8/18 CCs down to 8/18 -c230s at $2.28. This is like a buy-write or hedge against farther drops tomorrow. Sacrifice like @MikeC 2) opened new 8/18 ICs at +p217.50/-p227.50/-c230/+c240 at $4.60 (yikes, 46%, yes crazy, and probably will still lose the put side). Just an attempt to squeeze out a bit more with 2DTE. 3) rolled out some to 9/01 IBs +p225/-p235/-c235/+c245 at ~$8 (80% credit). Again, crazy and only works if IV drops and/or SP closes near $235. Will see how each works.

Also decided to close 1x Jan25 -c225 and some Oct23 -c300s (actually rolled to 8/18 -c230s and 9/1 -c235s), bought Sept +p210/-p200s (hedge against drop to the lower trend line which should have been done WEEKS ago), bought a few more Dec25 +c400/-c410s (will buy more if we break 220, 210, and 200). So, once again hedged up/down/long/short to the point where I’m not sure what SP direction will be best for my account. Once those remaining 2025 -c225s are closed, I will simplify and de risk the weekly ICs to a more manageable level.

Still have plenty of free cash in all accounts, so might open some wider, less risky ICs tomorrow for additional premium (in the $0.20 range, maybe like -p220/-c240s), but only if Friday’s close is some what easy to predict from options trading. I could buyback some more LEAPS, but will try to leave the remaining ones until the SP reaches 220, 210, and 200.

 

[Max Plaid]

BTC 55x Sep 2024 @$67 -> STO 55x Sep 2024 @$67

Yeah, wanted to resell 54x @$69, but the SP kept going down after the buy, so out of an abundance of caution I set the sell the same. Needed to ba patient, but after 3 hours it triggered...

Why? $55k realised gains, for "accounting purposes"

I did consider not reselling and using the 55x contracts to sell weeklies, but right now I prefer to keep the $370k capital, plus they provide a nice downside hedge

 

[Max Plaid]

TSLA getting beaten-up AH same as yesterday... methinks I'll be selling some -c220's tomorrow...

 

[ReddyLeaf]

TSLA getting beaten-up AH same as yesterday... methinks I'll be selling some -c220's tomorrow...

The drop accelerated today (see circled stochastics), so filling the 220-222 gap this week looks inevitable. Even perhaps, as @StarFoxisDown! suggested in the main thread, a push down to break the 100d SMA. MACD & RSI still have a bit more drop in them, so definitely a good possibility.

For myself, I’m getting a bit worried, even though we’re still within the rising channel, the bottom is coming very fast. Today, we broke the 0.500 Fibonacci level (April low to July high). Tomorrow it’s the 220-222 gap, and the 100d SMA, perhaps even the $217 February high. Then, unfortunately, the 0.382 Fibonacci level is only around $208 and coincides with the rising channel bottom, which could be an easy target for next week. From there, it’s only a small slide into the 200d SMA near $200. Below that, “be only dragons.” Perhaps the worst case train wreck scenario is playing out in slow motion right in front of our noses (e.g., a return to January lows or at least the $1xxs).

I’m not sure what reversal signal will be, but everyone should keep a close eye on volume and big bullish options trades as the SP approach $210. I hope this is the reversal SP, but just won’t know until after it’s happened. Please post observations and analyses here. GLTA.

 

[dropgems]

Are my sold 220P august 25th’s toast?

 

[Max Plaid]

The drop accelerated today (see circled stochastics), so filling the 220-222 gap this week looks inevitable. Even perhaps, as @StarFoxisDown! suggested in the main thread, a push down to break the 100d SMA. MACD & RSI still have a bit more drop in them, so definitely a good possibility.

For myself, I’m getting a bit worried, even though we’re still within the rising channel, the bottom is coming very fast. Today, we broke the 0.500 Fibonacci level (April low to July high). Tomorrow it’s the 220-222 gap, and the 100d SMA, perhaps even the $217 February high. Then, unfortunately, the 0.382 Fibonacci level is only around $208 and coincides with the rising channel bottom, which could be an easy target for next week. From there, it’s only a small slide into the 200d SMA near $200. Below that, “be only dragons.” Perhaps the worst case train wreck scenario is playing out in slow motion right in front of our noses (e.g., a return to January lows or at least the $1xxs).

I’m not sure what reversal signal will be, but everyone should keep a close eye on volume and big bullish options trades as the SP approach $210. I hope this is the reversal SP, but just won’t know until after it’s happened. Please post observations and analyses here. GLTA.

View attachment 965647

Yes, I'm now quite concerned as this is being walked-down at will, without regard to put walls or whatever. Volume is incredibly low, although it was higher yesterday, which is a bit worrying indeed, if this flips to high volume selling then we go down, fast

Of course the big risk now is that the rally up to 300 was fuelled mainly by call-buying and MM's delta hedging, now as we drop the a reverse gamma-squeeze is possible and then we may get into the margin-call spiral again

And another 1% down AH too, although most tech fell too - seems the FOMC minutes were more hawkish than expected and the FEDiots might continue with rate rises? Seems they're desperate to wreck the economy, I don't get it

Following yesterday's decline I'm now thinking to go nuclear... by this I mean either close out all my LEAPs and or sell slightly ITM weekly calls on ALL available contracts

Risk is that we get a reversal the moment I do that, but would free-up money for puts...

Remember there's a gap to be filled at $143...?

Are my sold 220P august 25th’s toast?

Yesterday the open interest pointed to a $232.50 close on Friday, but looks like that repositioned below $230 during the trading day, p220 might indeed come into play

 

[SpeedyEddy]

In this type of market traded levels are a better indicator than max pain. Big trade yesterday in puts 212.50 for 25th indicates -P 220 is absolute not safe*. Today I will close all of my -C at a presumed low. Tomorrow we will have a rebound because of expiry and no news expected. Then I will reopen ITM -C for next week and must be on high alert during the week, because missing the presumed bottom could become costly. So for those who are not in the position to trade fast: stay out of ITM calls (which I intend to sell tomorrow at some of the tops). (did you notice I do not recommend any trades, only elaborate on my stupid, but this time profitable ones) PS: I am 1/3 cash now. will be much lower end of next week, converted to stocks and LEAPS.
*maybe @dropgems could get lucky closing tomorrow if the drop today is not too big and the rebound tomorrow is high.
[edit; watch ES1 reaching 4300. If that is fast, then that will be a bottom, but an intermediate rebound above that level that will make a big oversold market possible and a passing of 4300. I call the latter the most probable and preferable (and clear) resolution.]

 

[Cobos]

I’ve been trading weekly calls with strikes about 10% above and closing them out after a few hours or a few days whenever I’ve got a decent profit. Yesterday I tried a monthly at 250, and was very that my thinking was right and could a few hours later close it earning almost $1000. That’s when I realised I hadn’t sold that call but bought it
I suppose that’s how you learn.

 

[Max Plaid]

I’ve been trading weekly calls with strikes about 10% above and closing them out after a few hours or a few days whenever I’ve got a decent profit. Yesterday I tried a monthly at 250, and was very that my thinking was right and could a few hours later close it earning almost $1000. That’s when I realised I hadn’t sold that call but bought it
I suppose that’s how you learn.

Consider it part of the learning-curve and a badge of honour

In other news, 25x -p250 exercised overnight*, 5x remaining... don't like it, but kinda resolves the put situation

(* note I would have got a margin-call if I hadn't have re-sold the Sep 2024 -c200's yesterday!!)

 

[UltradoomY]

I'm still bearish through the beginning of September - there really isn't much in the way of Macro news to help.
No scheduled Tesla news
P&D is long way away
Gaps to fill and the 10 yr. is screaming upwards - over 4.2 yesterday

Still going to be selling ATM calls and buying 10% OTM puts for next week - most likely later today / tomorrow

Still Holding my +$230Ps for this week expiration ($1 each CB)

Edit - also for anecdotal sake (OT) I bought tons of SPY Puts that are 30 days out Sep 15th - $442's for $3 when I got them on Tuesday - so net short this entire market until I see something different.
Might take some money off the table before NVDA earnings next week as these are already almost +50%

 

[intelligator]

235 and 260 appear to have been traded the most yesterday, 200 puts only. Without the flow data, unsure if it it was out of one into the other. Thinking of opening a 8/18 IC , +p200/-p210/-c235/+c245 but cautious of @SpeedyEddy note regarding reversals. Up pre-market, never implies we don't go down from here. Just not seeing 210 being at risk. An IC and an eye on it can be closed if we move aggressive one way or other without too much pain.

 

[Max Plaid]

235 and 260 appear to have been traded the most yesterday, 200 puts only. Without the flow data, unsure if it it was out of one into the other. Thinking of opening a 8/18 IC , +p200/-p210/-c235/+c245 but cautious of @SpeedyEddy note regarding reversals. Up pre-market, never implies we don't go down from here. Just not seeing 210 being at risk. An IC and an eye on it can be closed if we move aggressive one way or other without too much pain.

View attachment 965769

Acording to Cory, $214 is support, so I'm thinking to go to -c215 for next week, however they don't look very liquid, so might stick with the -c220's for now, can always roll down if it comes to it

Given the recent trend of a push into green at open, will put in an overly optimistic order before markets open...