Wiki Selling TSLA Options - Be the House

[khill]

Bearflag is getting very big now, almost no volume left, so clearly FOMO-ing the bounce if you ask me. Who will throw in the low-EPS warning + downgrade as the first?

20 analysts have already lowered their EPS estimates but not a single one has downgraded the stock price yet. As I mentioned before, it seems the analysts are looking ahead to Q4 and giving a pass to Q3 delivery numbers. At least so far.

 

[SpeedyEddy]

and off we go, sold some C257.50's a minute ago

 

[Right_Said_Fred]

One option, if you decide to go the way of additional options trading, would be to sell puts to hedge the risk (e.g, Jan2026 -p250s are $60 and, if I did the math correctly, you could sell 70x contracts of cash-secured puts, CSP, with that cash). This is called a strangle or straddle, and by definition one must win if the other loses.

Are you sure about those 70 x cash-secured -p250? That would require $1,750,000 in cash. The 93 x -c400 resulted in $427,800 cash, the 70 x -250 will result in another $420,000. That's still short $900,000.

 

[BornToFly]

Bought back the Oct 27 220 Puts I had sold. Looking to sell them again with GTC order for an extra $1 if we drop from here in the next week.

Aargh. I'm already regretting it. I'm not as good as some of you at being patient. All I see is the $2.7 I took off the table by buying them back if the SP doesn't drop. I think I've been burned too many times trying to be clever with swing trades that just cost me money....

 

[Max Plaid]

@Max Plaid what is your process for rolling short calls when NTM/ITM? I have a small -C260 practice position expiring this Friday and looking to learn the process of draining out premium before doing anything with it, and what to do.


View attachment 979581

Firstly I'd expect -c260's to expire this week, I know today has been against expectation somewhat, but I wouldn't be panicking about them at this moment in time

You need to know that I don't have a roll function with my broker, so it's always a buy/sell event. In an ideal world I'd do those at the same moment, but it's just not possible, so when I decide to roll - which is often the Thursday, not the Friday, to avoid drama - I will watch the chart a bit, then try to buy back the short call on a dip and resell when it pops back up - usually, with a bit of patience, you can win a $1 or 2 doing this, but there's always the risk it keeps dropping. If you have a broker roll function then I believe it's instant and very simple, but obviously more restricted

If I get calls (or puts) going DITM then I'll often straddle with some puts or calls to add some "free" premium, works most of the time to get you out of a hole - on larger positions you can do it gradually, so 100x calls could roll to 10x puts and 90x calls in a straddle, you'll either win big on the call side or reduce your calls by 10%, either way you'll win

But the main principle, roll before they go ITM, you'll get the best premium, whether you roll to the same strike or take a free roll higher, that's up to you and where you think the SP is going

 

[Jim Holder]

Firstly I'd expect -c260's to expire this week, I know today has been against expectation somewhat, but I wouldn't be panicking about them at this moment in time

You need to know that I don't have a roll function with my broker, so it's always a buy/sell event. In an ideal world I'd do those at the same moment, but it's just not possible, so when I decide to roll - which is often the Thursday, not the Friday, to avoid drama - I will watch the chart a bit, then try to buy back the short call on a dip and resell when it pops back up - usually, with a bit of patience, you can win a $1 or 2 doing this, but there's always the risk it keeps dropping. If you have a broker roll function then I believe it's instant and very simple, but obviously more restricted

If I get calls (or puts) going DITM then I'll often straddle with some puts or calls to add some "free" premium, works most of the time to get you out of a hole - on larger positions you can do it gradually, so 100x calls could roll to 10x puts and 90x calls in a straddle, you'll either win big on the call side or reduce your calls by 10%, either way you'll win

But the main principle, roll before they go ITM, you'll get the best premium, whether you roll to the same strike or take a free roll higher, that's up to you and where you think the SP is going

Thank you!

 

[strago13]

I bought some 180P for Nov 15 yesterday as a hedge based on @dl003 posts, clearly that was the pivot point for this rise.

 

[khill]

20 analysts have already lowered their EPS estimates but not a single one has downgraded the stock price yet. As I mentioned before, it seems the analysts are looking ahead to Q4 and giving a pass to Q3 delivery numbers. At least so far.

Source: https://x.com/aletechview/status/1709605296673325108?s=46

 

[SpeedyEddy]

I don't think I will make any money on trades today and am reluctant of taking losses yet (rolling on Friday, worst-case). I see my first bigger Net-portfolio-worth-drop in weeks. Today only want to close any green-turning -C (none expected to occur).
PS 259.92 line that I discussed earlier a few times is closing in very fast. that would be resistance then

 

[Singuy]

I don't think I will make any money on trades today and am reluctant of taking losses yet (rolling on Friday, worst-case). I see my first bigger Net-portfolio-worth-drop in weeks. Today only want to close any green-turning -C (none expected to occur).
PS 259.92 line that I discussed earlier a few times is closing in very fast. that would be resistance then

Who knew it was me selling calls for the first time that broke TA, didn't really have to wait for any white swan event..lol. What a waste of time arguing over nothing yesterday.

 

[ReddyLeaf]

Are you sure about those 70 x cash-secured -p250? That would require $1,750,000 in cash. The 93 x -c400 resulted in $427,800 cash, the 70 x -250 will result in another $420,000. That's still short $900,000.

Arggg, that’s what happens when I try to calculate without thinking! Yes, I just calculated the equivalent number of puts needed to generate the same premium. Ooops. Closer to 17x -p250s (17x250x100= $425,000 cash required). Sorry @Singuy

 

[OrthoSurg]

Who knew it was me selling calls for the first time that broke TA, didn't really have to wait for any white swan event..lol. What a waste of time arguing over nothing yesterday.

I can present to you my 100xCCs I sold at $2.63 when SP was $120 which are presently worth $33.45
I rolled them from 120 to 140 to 160 and finally to Jan2025 370

If you see your CCs someday at -1000%, please tell me how you feel, hardened and schooled by life.

The only good thing in all that story is that they are Covered. Else I’d be broke.


Also, It was a honor guys buying my first Puts yesterday for you who are holding strong long positions.

 

[UncaNed]

I can present to you my 100xCCs I sold at $2.63 when SP was $120 which are presently worth $33.45
I rolled them from 120 to 140 to 160 and finally to Jan2025 370

If you see your CCs someday at -1000%, please tell me how you feel, hardened and schooled by life.

The only good thing in all that story is that they are Covered. Else I’d be broke.


Also, It was a honor guys buying my first Puts yesterday for you who are holding strong long positions.

At least the Puts I bought don't expire until December. I like to leave more time for good things to happen.

 

[Singuy]

I can present to you my 100xCCs I sold at $2.63 when SP was $120 which are presently worth $33.45
I rolled them from 120 to 140 to 160 and finally to Jan2025 370

If you see your CCs someday at -1000%, please tell me how you feel, hardened and schooled by life.

The only good thing in all that story is that they are Covered. Else I’d be broke.


Also, It was a honor guys buying my first Puts yesterday for you who are holding strong long positions.

Perhaps it's a classic "everyone saw it on the chart so the opposite must happen to cause max pain".

 

[juanmedina]

Who knew it was me selling calls for the first time that broke TA, didn't really have to wait for any white swan event..lol. What a waste of time arguing over nothing yesterday.

Now that your covered calls are in red remember that you are ok with letting go of your shares for $400. I sold similar calls like you before in which the trade when the wrong way fast and panicked and I closed them for a decent loss just to what the stock comeback down and watch the covered calls expire OTM.

So now what? a close above $256 means a run to $290? how lame...

 

[OrthoSurg]

Perhaps it's a classic "everyone saw it on the chart so the opposite must happen to cause max pain".

When I buy Puts, get ready guys because the SP is about to take off.

 

[SpeedyEddy]

top of right shoulder on the daily and hourly reached. (NO H&S built yet! only possibly one in the making that if completed would indicate a 206 later this year (but it has to not run up too far from here, which would more and more invalidate this pattern as well as the bigger one concluding in a drop to 189, which in fact today already was destroyed I guess ))

 

[john tanglewoo]

20 analysts have already lowered their EPS estimates but not a single one has downgraded the stock price yet. As I mentioned before, it seems the analysts are looking ahead to Q4 and giving a pass to Q3 delivery numbers. At least so far.

Well, AAPL was downgraded today and the stock is up, so who knows what's in store. Make it make sense!!!!!

 

[Max Plaid]

Thank you!

Didn't age well, but of course tomorrow we might be 5% down, who knows!

 

[SpeedyEddy]

at the moment I am at the same point moneywise as when I started selling shares, so only 10 dollars gain per share sold. (on paper, still can not believe this was a genuine move, although the market is said to be always right. Holding on to very unprofitable -C 255,252.5, 250 and 240...)