Wiki Selling TSLA Options - Be the House

[juanmedina]

Still have -c260/267.50/275 up 10-30% since Friday but hoping to close out half of those at 50+% on any weakness tomorrow. This slowing volume looks bearish to me and I’m kind of surprised we’re still up here at 255.

We have had zero run up to ER. We are actually down for the last 30 days by $10. I actually thought we would be higher than this with last Wednesday at $268.

 

[Jim Holder]

We have had zero run up to ER. We are actually down for the last 30 days by $10. I actually thought we would be higher than this with last Wednesday at $268.

Good observation and supports the thesis that it was already priced in and if TSLA drops it won’t be deeper than $242 area and we may actually rally back with the markets.

 

[MikeC]

We have had zero run up to ER. We are actually down for the last 30 days by $10. I actually thought we would be higher than this with last Wednesday at $268.

Deliveries were a miss so there was no real reason for a run up. We also haven’t reliably had run ups in TSLA in a while. Happy to be wrong but I’m bracing for a drop after ER, other than maybe a Megapack revenue/margins surprise, I don’t know what’s going to get people excited.

 

[Jim Holder]

I don’t know what’s going to get people excited.

Perhaps any EPS starting with an 0.8, plus Highland M3 sales starting in USA Q1, CT release date, and reaffirmation of 1.8M+ cars for 2023?

 

[DaBooster]

Deliveries were a miss so there was no real reason for a run up. We also haven’t reliably had run ups in TSLA in a while. Happy to be wrong but I’m bracing for a drop after ER, other than maybe a Megapack revenue/margins surprise, I don’t know what’s going to get people excited.

Forward guidance during call will have impact, lets hope its positive

 

[MikeC]

Perhaps any EPS starting with an 0.8, plus Highland M3 sales starting in USA Q1, CT release date, and reaffirmation of 1.8M+ cars for 2023?

An EPS surprise would be the main thing IMO, maybe powered by Megapack. Confirming guidance seems like it would be neutral, and we might not even get that because they softened the language in the delivery number release. 2024 guidance won’t be until next quarter. Vehicle launches and release dates have never really moved the needle on the stock price.

 

[Jim Holder]

Another viewpoint that supports what some are feeling:

 

[durkie]

Ok, not exactly the usual topic of discussion around here, but does anyone here have feelings on YTSL ( Tesla (TSLA) Yield Shares Purpose ETF | YTSL )? It tracks TSLA mostly, but generates income from "a covered call strategy and moderate leverage". It's honestly pretty attractive to me as I feel like I just have less time these days to jump in and out of positions and keep track of everything. Currently at a yield of 15%, which seems pretty nice.

 

[Blue horseshoe]

Ok, not exactly the usual topic of discussion around here, but does anyone here have feelings on YTSL ( Tesla (TSLA) Yield Shares Purpose ETF | YTSL )? It tracks TSLA mostly, but generates income from "a covered call strategy and moderate leverage". It's honestly pretty attractive to me as I feel like I just have less time these days to jump in and out of positions and keep track of everything. Currently at a yield of 15%, which seems pretty nice.

Have a tiny amount of tsly which uses a similar strategy

 

[Oil4AsphaultOnly]

Ok, not exactly the usual topic of discussion around here, but does anyone here have feelings on YTSL ( Tesla (TSLA) Yield Shares Purpose ETF | YTSL )? It tracks TSLA mostly, but generates income from "a covered call strategy and moderate leverage". It's honestly pretty attractive to me as I feel like I just have less time these days to jump in and out of positions and keep track of everything. Currently at a yield of 15%, which seems pretty nice.

First TSLY, and now YTSL. That would explain why our premiums are diminishing! Talk about a crowded trade.

 

[SebastienBonny]

Ok, not exactly the usual topic of discussion around here, but does anyone here have feelings on YTSL ( Tesla (TSLA) Yield Shares Purpose ETF | YTSL )? It tracks TSLA mostly, but generates income from "a covered call strategy and moderate leverage". It's honestly pretty attractive to me as I feel like I just have less time these days to jump in and out of positions and keep track of everything. Currently at a yield of 15%, which seems pretty nice.

I was in the same position and switched to monthly options. Way less time-consuming!

 

[Jim Holder]

QTA Levels for Today

 

[durkie]

Have a tiny amount of tsly which uses a similar strategy

Wow 50%! That's nuts. Seems like a great purchase if you expect TSLA to be sideways/down for a while. YTSL at least holds some TSLA so you get some upside, but accordingly less dividend too.

 

[SpeedyEddy]

New low incoming, maybe do some more of the -P +C I did yesterday... (waiting for SP245 at least)
[edit] For the one that believes in head-and shoulders: target of that one would be 233 in a few days and match my purple line exactly as support [/edit]

 

[Cherry Wine]

My biggest downside concern is that margins come in worse than expectations, and Elon doing his usual routine. I'm also mindful that this is our first earnings call without Zachary Kirkhorn since he came in as CFO. Zach was a great voice on the earnings calls that will be missed.

I'm now positioned as follows:

20x 10/13 -c275s - these are rolled up from -c270s before close yesterday at a net profit, but paid an $0.84 debit to do so. Wanted to get a bit further away from the stock price in case of a bullish market reaction to CPI.
10x 10/27 +p230s - these are rolled up from +p200s.
40x 11/17 +p200s - no change.
10x 12/15 -c300s - a new defensive position that I'm okay having to deal with if needed. Not looking to sell shares here necessarily, but okay with managing from this point.

At this point, I will look to open a deep OTM 10/20 covered call position if the stock rises substantially between now and earnings. Not interested in current premiums right now, though.

If the stock shoots up post-earnings, that's great for my financial situation and I have plenty of contracts that I can write at much higher strikes to take advantage. If it shoots down, I can close out my covered calls for pennies and hopefully make a profit on long puts. If it trades sideways my long puts will expire worthless but I'll happily harvest the theta and IV crush on my covered calls. I'm fairly happy with my positioning at the moment.

Slow week for me, but I made some / am looking at trades this morning aimed at creating some upside headroom. Closed the 10x 10/27 +p230s at about 110% return. Will consider closing the 10x 12/15 -c300s, which are up about 50% at the moment already, if we get continued weakness into the call. Looking for $3.50ish. I also rolled the 40x 11/17 +p200s out to 11/24 at a $0.37 debit to give my downside hedge a little more runway on the cheap. I might rebuy the 10/27 +p230 position if we get a big upward move into the close.

 

[thenewguy1979]

$220 by end of Friday. Made my bets. Good luck guys.

 

[MikeC]

Closed out most -c260 but letting the 267.50c/275c ride. Hoping a big drop after ER is less likely after the down day today but still not expecting any big rally.

 

[Max Plaid]

IV for this Friday currently at 106%, good moment to sell some YOLOs

Holding my 70x -250 straddles into ER (>232<268 break-even), down from here short term is OK as I have 200x March +p200's as insurance. Upside is trickier to manage, but not a disaster either, so I see where it all lands tomorrow after the IV crush

 

[intelligator]

Interesting how the SP faded... I have -c262.5, -c270, -c280 for Friday which at this time I don't feel they will be at risk. On the other end I have -p210s , should have closed those at market open.

 

[SpeedyEddy]

New low incoming, maybe do some more of the -P +C I did yesterday... (waiting for SP245 at least)
[edit] For the one that believes in head-and shoulders: target of that one would be 233 in a few days and match my purple line exactly as support [/edit]

2:1 once more (- p220 and -p230 bought me C220 all jan '26)

(P.S. day-traded in and out of -C255 oct20 bringing me some extra $, out again and will stay out now, not pressing my luck of earning another 500 bucks, might the stock fall further, my P 210 and P 200's will bring an extra round of money)