Wiki Selling TSLA Options - Be the House

[MrMoo]

I don't agree that holding has not worked out here at all. Looking back, we were what? $26 on January 1st 2020? How many stocks have 10x in not even 3 years and still kept their gain? Holding has worked out beautifully if your entry was good and unfortunately, most entries since 2021 has been crap. But that doesn't mean the stock is hopeless. On the contrary, it's stronger than most things you'll find on the Street. It just needs more time to digest the 10x gain and that's a lot of gain to digest.

Yes but there is opportunity cost in that. If you are lucky enough to have rode that 10x you can take that profit and put it into an index fund and outperform Tesla while it "digests"

Alternatively if you can get out at breakeven you can also get into a better stock while TSLA "digests". You don't need to hold onto dead money for 5 years on the hopes it doubles again.

 

[dl003]

Yes but there is opportunity cost in that. If you are lucky enough to have rode that 10x you can take that profit and put it into an index fund and outperform Tesla while it "digests"

Alternatively if you can get out at breakeven you can also get into a better stock while TSLA "digests". You don't need to hold onto dead money for 5 years on the hopes it doubles again.

And miss out on all the fun with y'all degenerate gentlemen and ladies? No thanks.

 

[Jim Holder]

QTA generated levels for today
Range Low ($252.44)
Range High ($262.07)

Look at the bounce off the range low. Held yesterday's low so far.

 

[Nocturnal]

Yes but there is opportunity cost in that. If you are lucky enough to have rode that 10x you can take that profit and put it into an index fund and outperform Tesla while it "digests"

Alternatively if you can get out at breakeven you can also get into a better stock while TSLA "digests". You don't need to hold onto dead money for 5 years on the hopes it doubles again.

That assumes you know when it will be done digesting, and I'm positive it won't be 5 years. (and assumes the indexes will actually go up over that time)

 

[BornToFly]

This is really crazy stuff. TSLA down while F up 2.3% on the leak that the UAW leadership wants to cripple them for months. Please make this make sense….

 

[MrMoo]

And miss out on all the fun with y'all degenerate gentlemen and ladies? No thanks.

Lol fair enough. There's definetly more action on my TSLA trading account than my QQQ account.

That assumes you know when it will be done digesting, and I'm positive it won't be 5 years. (and assumes the indexes will actually go up over that time)

Well it's already been 3, so we just need 2 more. Are you seriously positive we can't trade under 300 for 2 more years? Also it definetly won't 10 times again. Not until we are pretty old. 8 trillion doesn't seem like a market cap that is easily reached.

 

[SpeedyEddy]

This is really crazy stuff. TSLA down while F up 2.3% on the leak that the UAW leadership wants to cripple them for months. Please make this make sense….

Just waiting to short them big time

 

[dl003]

I sold puts again. TSLA broke down from a bear flag, which is what prompted me to close my short puts yesterday - the bear flag that is. However, one interesting fact about bear flags is that they tend to form leading up to the final leg in an up/down move.

 

[john tanglewoo]

Yes but there is opportunity cost in that. If you are lucky enough to have rode that 10x you can take that profit and put it into an index fund and outperform Tesla while it "digests"

Alternatively if you can get out at breakeven you can also get into a better stock while TSLA "digests". You don't need to hold onto dead money for 5 years on the hopes it doubles again.

I have been holding the stock since 2013.

In that time I have used the gains and holdings to obtain a liquidity access line (think margin but not for intention of stocks) at an absurdly low rate.

I use that low rate to fund real estate deals, whether via hard money lending, rentals, and flips. The profit margins on these are substantial.

To leverage my position even more, I sell options on my shares, as do most people in this thread.

Now I'm sure I could have moved my gains into an index fund, but that exposes me to missing the next run up. You have to be in it to win it.

Note this is only my situation and I would not advise others on the same. I have significant holdings in fixed income, energy, tech, and alternative investments. So TSLA is not my only horse, and perhaps if it was I would feel a strong urge to diversify due to your reasons above.

 

[Nocturnal]

Well it's already been 3, so we just need 2 more. Are you seriously positive we can't trade under 300 for 2 more years? Also it definetly won't 10 times again. Not until we are pretty old. 8 trillion doesn't seem like a market cap that is easily reached.

Not positive at all. If we do trade under $300 for another couple of years then I'm expecting the overall market will also be garbage in that timeframe if that does happen.

 

[SpeedyEddy]

Well it's already been 3, so we just need 2 more. Are you seriously positive we can't trade under 300 for 2 more years? Also it definetly won't 10 times again. Not until we are pretty old. 8 trillion doesn't seem like a market cap that is easily reached.

The internet will never forget... I am pretty sure Tesla will become the biggest company of the world even bigger then top 2 to 4 combined. Trillions in Fiat money is easy when Inflations will keep going up. Outcompeting All (class-wise)competitors is already booked in. I don't want to make the argument, because you can get them everywhere. The Behemoth growing under a thin stock price skin will not be kept at rest for long. All the production lines upgrades (that will be touted as production issues), factories to be unveiled and appreciably the efiiciency of them at work will be seen late by many and they never will pull the trigger, thinking the growth story will bust soon not recognizing the stacked S-curves this company will go through. It really is just the beginning. (see James Stephensons graphs that unveil the projected growth very realistically and stunning)
But don't you tell anybody, because I would like buying in cheaper longer.

 

[dl003]

Personally, I wouldn't do it any other way. Since 2020, we've been through like 5+ 50% or more drops. 2 stock splits. An SP inclusion. As a self taught trader, I've learned so much and been battle hardened in that short timespan. I've been through and learned more lessons than I could ever dream of. So yes, while TSLA has stayed in once place for 3 years, my skill have more than enough made up for it and I'm looking to put it to good use for years to come. It is what it is. The important thing is what you choose to do with it.

 

[Max Plaid]

Lol fair enough. There's definetly more action on my TSLA trading account than my QQQ account.


Well it's already been 3, so we just need 2 more. Are you seriously positive we can't trade under 300 for 2 more years? Also it definetly won't 10 times again. Not until we are pretty old. 8 trillion doesn't seem like a market cap that is easily reached.

Sure, but if we're all so clever at timing the market (or moving to other stocks), then we could have sold multiple times around $300 the last two years and bought back in as low as $100

But it's not possible to anticipate, otherwise we'd all be insanely wealthy... although personally, having rode $TSLA HODL from 2016 to end 2021, I did very well, thank you very much, but would have been $2m more if I'd jumped out at ATH, but guess what, I thought it was going up another $200, to $1450 at the time, based on, dah dah, all the TA commentary that was being shared at the time (not @dl003 !!), but then we got the Elon "Should I sell for taxes" black swan, which started the down-trend that we've essentially been in ever since

So for sure, sell out of TSLA and go trade some other stock, I think about it too, but I have zero knowledge of other companies, but know more than 99% of folks about Tesla. I'm fully aware of the Wall Street games that are played, the FUD and misinformation -> and that, to my mind, gives me an edge, so I stay in TSLA and stick to what I know

As for today, not sure what they're after - cheap shares from all the puts that will exercise below 260? Longer term, I don't know either, feels bearish, for sure, but then it felt bearish in May and just before Jonas' upgrade came out, so no clue

 

[Cherry Wine]

Opened 20x 9/29 -c280s at $1.05 shortly after open. I want to open some 9/29 -p225s, but am looking for a better price than the current ~$0.40.

Opened the 9/29 -p225s this morning at $0.54.

 

[ghostlyB]

Personally, I wouldn't do it any other way. Since 2020, we've been through like 5+ 50% or more drops. 2 stock splits. An SP inclusion. As a self taught trader, I've learned so much and been battle hardened in that short timespan. I've been through and learned more lessons than I could ever dream of. So yes, while TSLA has stayed in once place for 3 years, my skill have more than enough made up for it and I'm looking to put it to good use for years to come. It is what it is. The important thing is what you choose to do with it.

Long time reader of this thread(since 2020), first time commenter. Just wanted to say AMEN! and thank you for your insights.

 

[CrunchyJello]

How are you determining your target premiums? Used to be OptionsCalculator for me, but now I use OptionStrat as the former has a very clunky interface, which although not perfect (as IV moves rapidly and I'm not sure it adapts to that in real time), gives a pretty good indication as to what SP you need to get that premium. OptionsStrat you can move the strike, export and IV around quickly with sliders - this is available in the free version

To get $4.1 for -c270's yesterday, we needed to hit 263 and above - that's the sort of trade I would try for in the opening 10 minute IV spike and volatility, they sometimes stick and I would have placed the order before market open, but yesterday would never have hit, and in any case, I didn't decide to buy the 2026 LEAPS and sell against them until the daily downtrend look set

$3.1 I setup when the stock was being capped at 258, but looked like it was trying to break out. So I went for it and it filled - you need patience for these, it took about an hour... if it had not worked I was going to take whatever was on offer end of the day

View attachment 976168

I've been using OptionStrat for quite a while,
but I've never seen the volume bars above/below the strikes.
How do you get these bars? Or is this the paid version...?

 

[khill]

I sold puts again. TSLA broke down from a bear flag, which is what prompted me to close my short puts yesterday - the bear flag that is. However, one interesting fact about bear flags is that they tend to form leading up to the final leg in an up/down move.

Can you please expand on this a bit? Based on what you are seeing TA wise and flow wise, what’s your best guess for trading range today and next week?

 

[dl003]

Can you please expand on this a bit? Based on what you are seeing TA wise and flow wise, what’s your best guess for trading range today and next week?

I'm not trying to be a jerk but I can't both provide updates and explain the rudimentaries. There are a lot of free resources online on bear/bull flags and what a "leg" is. I strongly recommend you to read up on those and open an account with Tradingview keep track of these things. I already said this morning I didn't have any idea what next week is going to look like.

 

[tivoboy]

Can you please expand on this a bit? Based on what you are seeing TA wise and flow wise, what’s your best guess for trading range today and next week?

I would suggest a username search of THIS thread with @dl as the member name. There have been many quality explanations with examples over the past few years. Pull up all the threads in tabs and just read through them and their informative images and graphs. Probably a more instructive process to begin with.

 

[thenewguy1979]

It can goes both ways. Keeping going down as we hit earning and PD or bounce back next week with anticipation of PD and earning and overall market recovery from this reds. Playing Option is gambling. Seem everyone is betting flat or down thus betting up is going against the stream. Take it with a grain of salt from a guy with 2 posts.