Wiki Selling TSLA Options - Be the House

[jeewee3000]

Thanks adiggs. Since you started the thread 3 years ago much has happen since then. I heard option credit spread was a thing back then but not now.

If you were to list the top 3 things you have gathered over those years would you mind sharing them with us? Are you still spending more or less hour making the incomes? Sorry for being a nosy dog.

I haven't been as active as I was in this thread before my personal capitulation, but my biggest lessons learned were:

1) Don't be greedy. Patience can save you a lot of money. In other words: be picky about the trades you enter.
2) Have a plan for how you will exit or manage a position before you enter it (in all possible scenarios, i.e. when the position is winning, staying flat or losing. If you are not comfortable with the outcome of one of these scenarios, the trade is too risky for you).
3) Never go all in on one "conviction". The market throws curveballs often, and rarely when you expect it.

 

[Cherry Wine]

Rolled my 11/10 -c250s out to 11/17 -c250s for a $0.50 credit.

 

[Cherry Wine]

I haven't been as active as I was in this thread before my personal capitulation, but my biggest lessons learned were:

1) Don't be greedy. Patience can save you a lot of money. In other words: be picky about the trades you enter.
2) Have a plan for how you will exit or manage a position before you enter it (in all possible scenarios, i.e. when the position is winning, staying flat or losing. If you are not comfortable with the outcome of one of these scenarios, the trade is too risky for you).
3) Never go all in on one "conviction". The market throws curveballs often, and rarely when you expect it.

Great and succinct advice that correlates with a lot of my learnings over the past 5 years.

 

[Max Plaid]

Seem Tesla is doing the flatline dance again. Up down and up back to where it start last 2 days. Great for seller at 230 and 210. Waiting to go long or short on my end.

Guess we are now all onboards shorting AAPL

I'm not touching AAPL, and certainly not shorting it. I think the reaction to their earnings was overblown. Of course algobots trade on data points and if the TA stars are aligned that's another matter and I wish you all well!

 

[Oil4AsphaultOnly]

Rolled my 11/10 -c250s out to 11/17 -c250s for a $0.50 credit.

What's the rationale for rolling out these OTM CC's for a credit? Are you thinking that the runup is done and you wanted to maximize the premium on the new call option?

 

[Max Plaid]

Forgive me Father for I have sinned: STO 20x 11/10 -c220 @$5.1 -> straddled with the existing 50x -p220 and providing a little insurance I, the case of a Friday close below 220, and plan to roll to straddle next week's -p220's

Obviously pays a little up to 225 and pokes the bear a little to keep the SP up

 

[Oil4AsphaultOnly]

Forgive me Father for I have sinned: STO 20x 11/10 -c220 @$5.1 -> straddled with the existing 50x -p220 and providing a little insurance I, the case of a Friday close below 220, and plan to roll to straddle next week's -p220's

Obviously pays a little up to 225 and pokes the bear a little to keep the SP up

probably explains why the SP's still going up!

 

[Cherry Wine]

What's the rationale for rolling out these OTM CC's for a credit? Are you thinking that the runup is done and you wanted to maximize the premium on the new call option?

There was little credit left in the current position and I wanted to capture the premium on the new position while I could. With that said, I actually like the setup for another bounce...stock seems like it wants to test that $226-$242ish gap. I'm considering another short-term lotto play. If we get a small dump at the open tomorrow I might take a flier on some call options.

 

[SpeedyEddy]

SP not doing 240 first before falling to 212 makes 212 a weaker bottom, with which the whole 240-212-340-300-ATH would be postponed (at least). Reduced all long positions on TSLA 2 hours ago to 50%, hawkeyeing what will happen @SP212. If Failing to bounce, I will stay out and probable reduce longs to 25%.

Yesterday was a bit busy, so I update my positions taken yesterday and today. On the rise yesterday (SP holding $215) it became clear that first we resume the uptrend, which made me get back in long 100%, not losing (even buying all of earlier closed positions a bit cheaper). Today I got back home to sail the waves in and out of stock on clear moves, so now (after closing my ever losing long position on SOFI) I have reached a local maximum in long $TSLA (+ $PLTR and $NVO) and put a bit of the gains in Puts 11/24 AAPL (P172.5) as some here have done, just to join in on the fun we all might have.
to add to happiness I sold P NVDA 395 and C NVDA 570 both 11/24 expected to expire worthless.
LEAPS intact just like Jan'26 -P200 to finance these.

 

[ninpb]

@dl003 was this a text book 5 wave today that even a noob like me can spot it?

 

[BornToFly]

My gut tells me we are getting a 225 or 230 close on Friday. We'll see if it's just gas.

I still have the 230CCs. I could roll to 240 next week for a .2 credit, but that seems even more risky. Trying to give it more time....

 

[Jim Holder]

My gut tells me we are getting a 225 or 230 close on Friday. We'll see if it's just gas.

I still have the 230CCs. I could roll to 240 next week for a .2 credit, but that seems even more risky. Trying to give it more time....

TSLA still needs to close some candles over $224-$226 which it’s been having decent trouble doing. Until then shorts dominate and staying under $223 keeps $214/$204/$181 on the menu.

A firm close over $224 is a sign your gut was right and to consider closing active shorts. But even then still unsure if -C230 is in peril for Friday due to the huge $225 call wall in front of it.

 

[intelligator]

The high put volume we saw yesterday at p180 (remains highest put wall at 18k) retracted by 11k. Relative to all OI shift and per max-pain site, steady business at p220, p217.5, p215, gradual OI increases to p210, and p200. c225 retracted slightly, money shifted to c230. Put call ratio went from .91 to .89, max-pain increased by 2.5 to 217.5

Today is the day I'll need to manage -c235/+c255 for 11/17. I wasn't around Tuesday when we saw that dip to 215 ... would have been a good time to close for break even. I considered moving the spread down and in by $5 to this week, that's too close to the sun. Careful out there, GLTA.

 

[thenewguy1979]

The high put volume we saw yesterday at p180 (remains highest put wall at 18k) retracted by 11k. Relative to all OI shift and per max-pain site, steady business at p220, p217.5, p215, gradual OI increases to p210, and p200. c225 retracted slightly, money shifted to c230. Put call ratio went from .91 to .89, max-pain increased by 2.5 to 217.5

Today is the day I'll need to manage -c235/+c255 for 11/17. I wasn't around Tuesday when we saw that dip to 215 ... would have been a good time to close for break even. I considered moving the spread down and in by $5 to this week, that's too close to the sun. Careful out there, GLTA.

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My max profit and loss calculator based on that spread show a profit of 196 and max loss of 1800. Is that typical of such a spread?

Safer then normal call selling I assumed but win loss is low, less you have dozen of contract at a time?

 

[intelligator]

My max profit and loss calculator based on that spread show a profit of 196 and max loss of 1800. Is that typical of such a spread?

Safer then normal call selling I assumed but win loss is low, less you have dozen of contract at a time?

I rolled here for credit last week ahead of realizing how busy next week will be with monthly expire, money shifts, vacation (duh), etc. If it expires 11/17, sure it's a win. If I have to close, I have about 1.12 to play with to break even (give back previous roll credits) to where the position sits now after two rolls.

 

[thenewguy1979]

Look like another uneventful macro wise. Tesla dont seem to have the strength for a strong push up. For those with strong conviction on AAPL going down to 160 - today Puts are at a discount. Load them up.

 

[OrthoSurg]

@dl003

Already breached 182.50
Waiting 15 min candle to close shorts?

 

[BornToFly]

Looking at the daily chart. TSLA doesn't go sideways in such a tight range for long. Will break soon in one direction or the other. Hopefully can hold here 3 more days....

 

[BornToFly]

The short sellers have no idea how happy they are making me right now....

 

[EVNow]

Seems to me TSLA is being supported by macros - definitely underperforming Nasdaq this week.

If this is true - a down market day will see the SP fall quit a bit.