Wiki Selling TSLA Options - Be the House

[jeewee3000]

There's no use talking about strikes without looking at the chart. Generally speaking, I look at option premium as primarily made up of 2 components: theta and delta. If you think the stock is going to make big moves in 1 direction, triggered by some sort of signal, then better to exchange delta for theta, and don't half ass it. If you think the stock is going to reverse, do the opposite. This is not about how long you're gonna be tied up. It's about whether you have the information and conviction to do this dance. Done right, you can get a ton of room for the stock to run when it's about to run and then roll it back just in time before it reverses. Thinking "how long am I gonna be tied up?" is already accepting defeat. Stocks don't run up forever, when you only think about rolling it out, you're only dealing with one half of the journey without giving any thought to the second part. So if it breaks 258.08, roll it out to December 2025 at even credit. Then when you think it's topped out, roll it back in to 7 DTE for even credit, or better yet, close the calls and sell the shares. Now, my chart read can be wrong and it has been wrong enough times to make other strategies just as relevant if done right. This is just how I'd do it.

A gem of a post.

I've been doing it along these lines but this puts it into words better than I ever could. Thanks.

 

[Jim Holder]

Anyone keeping scores? Gave you the bottom even before the stock topped out and called the DCB even before it bottomed out.

Fab work! How low will it go?

 

[UltradoomY]

STO 01/24 $310 CC - $13.50 each around open.

GLTA - will close out if 50% presents itself before expiration.

 

[dl003]

Fab work! How low will it go?

Dont know yet. But I'm bullish mid term so 237-240 maybe.

 

[Jim Holder]

There's no use talking about strikes without looking at the chart. Generally speaking, I look at option premium as primarily made up of 2 components: theta and delta. If you think the stock is going to make big moves in 1 direction, triggered by some sort of signal, then better to exchange delta for theta, and don't half ass it. If you think the stock is going to reverse, do the opposite. This is not about how long you're gonna be tied up. It's about whether you have the information and conviction to do this dance. Done right, you can get a ton of room for the stock to run when it's about to run and then roll it back just in time before it reverses. Thinking "how long am I gonna be tied up?" is already accepting defeat. Stocks don't run up forever, when you only think about rolling it out, you're only dealing with one half of the journey without giving any thought to the second part. So if it breaks 258.08, roll it out to December 2025 at even credit. Then when you think it's topped out, roll it back in to 7 DTE for even credit, or better yet, close the calls and sell the shares. Now, my chart read can be wrong and it has been wrong enough times to make other strategies just as relevant if done right. This is just how I'd do it.

Thanks, great stuff! Can you share your put selling strategy/process when shares are called away?

 

[Cherry Wine]

TSLA getting an extra push down along with broader markets on a hot reading in ISM Services as well.

https://twitter.com/x/status/1699422304952799639

 

[OrthoSurg]

Anyone keeping scores? Gave you the bottom even before the stock topped out and called the DCB even before it bottomed out.

Can I send you my money already.

 

[dl003]

Thanks, great stuff! Can you share your put selling strategy/process when shares are called away?

Not much of an expert when it comes to selling puts as I've always been almost 100% all in and only sell naked puts for extra income. But if your goal is to get back in, treat a short put as a BW. When you think it's bottomed out, try to guess how far it's gonna run up and how far the pullback is going to be, before going up again. You have 2 choices: either get in at the bottom and ride it back up or sell some puts. If you sell puts at the bottom you won't be able to get back in at the bottom because that how bottoms work. Once it touches it, it's gonna rocket back up. If you sell puts at the bottom, you've determined to get back in at the pullback. Say it touches 235 and you think that's the bottom. Then you think it's gonna go up to 260 for the 2nd peak of the triple top pattern, before pulling back to maybe 240. At 235, you sell a 240P 1 week out. Fun fact: a 240P sold at 235 gives you the same amount of time value as a 230P. As the stock touches 260, you close this 240P and then use the profit to get back in when it pulls back to 240. If it sounds complicated, that's because it is. Nothing beats a good old fashion share grab at the bottom.

 

[elasalle]

The recent sold CCs got me 67 shares .. which got me 2 Dec 25 260 calls… it’s another wheel

+will sell CC's against soon ....

 

[Jim Holder]

Not much of an expert when it comes to selling puts as I've always been almost 100% all in and only sell naked puts for extra income. But if your goal is to get back in, treat a short put as a BW. When you think it's bottomed out, try to guess how far it's gonna run up and how far the pullback is going to be, before going up again. You have 2 choices: either get in at the bottom and ride it back up or sell some puts. If you sell puts at the bottom you won't be able to get back in at the bottom because that how bottoms work. Once it touches it, it's gonna rocket back up. If you sell puts at the bottom, you've determined to get back in at the pullback. Say it touches 235 and you think that's the bottom. Then you think it's gonna go up to 260 for the 2nd peak of the triple top pattern, before pulling back to maybe 240. At 235, you sell a 240P 1 week out. Fun fact: a 240P sold at 235 gives you the same amount of time value as a 230P. As the stock touches 260, you close this 240P and then use the profit to get back in when it pulls back to 240. If it sounds complicated, that's because it is. Nothing beats a good old fashion share grab at the bottom.

Thanks for this. Clear and to the point.

 

[khill]

Anyone keeping scores? Gave you the bottom even before the stock topped out and called the DCB even before it bottomed out.

Thank you. Where do you think we bottom? 242? Or even below that?

 

[Jim Holder]

Thank you. Where do you think we bottom? 242? Or even below that?

He replied earlier:

Dont know yet. But I'm bullish mid term so 237-240 maybe.

Seems to be finding a base for now around $245.57 (61.8% Fibonacci from the high $299.29 and the low $212.36). Let's see if it holds.
Needs to take out $245 for more downside.

 

[phantasms]

PermaMacroBear here

Sold 255c for $4.10 for this Friday on shares I put acquired for $231. Win win scenario.

Closed at $1.24.

Wen Spring?

Only closed early because I got so far ahead in 24hours. Hopefully I can sell again.

 

[khill]

Dont know yet. But I'm bullish mid term so 237-240 maybe.

Can you please clarify what you mean by bullish mid term? What are the levels do you think it will get to and by when?

 

[dl003]

Can you please clarify what you mean by bullish mid term? What are the levels do you think it will get to and by when?

We break 298 and top out @ 320+ before pulling back to 200 by June next year.

 

[Nocturnal]

We break 298 and top out @ 320+ before pulling back to 200 by June next year.

I'm just a noob on TA, even with TSLA, but my sense of the macro supports this. I expect a sizable market correction once the FED pivots to cuts. Perhaps coming back green towards end of 2024.

 

[khill]

We break 298 and top out @ 320+ before pulling back to 200 by June next year.

Thank you so much. What is the trading range you are looking between now and end of October (in to and after earnings).

 

[OrthoSurg]

We break 298 and top out @ 320+ before pulling back to 200 by June next year.

my Jan2025 LEAPS are sweating a little bit

 

[dl003]

Thank you so much. What is the trading range you are looking between now and end of October (in to and after earnings).

Too many variables atm. I'm looking to buy 255/257.5 call spread exp 9/15 at under 240 this week if we get there.

 

[Jim Holder]

Too many variables atm. I'm looking to buy 255/257.5 call spread exp 9/15 at under 240 this week if we get there.

+C255
-C257.5