Unless you have puts (seems so) and not cc as you originally wrote and what I have, to keep shares, I want price below 247.5. Anything above will be at risk of being called away, I will roll before that happens.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I agreed to help with surgeries today and tomorrow. So I sold some CCs before getting out of the car at the hospital. When for -265CC for next week for $1. Of course the SP kept climbing and they are now over $2. If the SP ends at 270 next week, I will have made about $800 operating today, and lost $50,000. Awesome.
With the Fed pivot, I too agree that we are going to be climbing into P&D now. We were in a very tight consolidation for about a month. The spring just sprung. 280 next Friday would not surprise me now, so I will probably have to manage those 265CCs.
Edit: The two year descending resistance will be at 261 next Friday. It's at about 264 tomorrow.
With the Fed pivot, I too agree that we are going to be climbing into P&D now. We were in a very tight consolidation for about a month. The spring just sprung. 280 next Friday would not surprise me now, so I will probably have to manage those 265CCs.
Edit: The two year descending resistance will be at 261 next Friday. It's at about 264 tomorrow.
I wouldn’t worry right now about next Friday being over $260, a lot of things need to go right for that to happen. NFA.
If it’s any consolation, Cary expects TSLA to reject and fall from $257-$264 area to $220-$180 over several weeks. Only a close above $265 can give more upside.
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He didn’t say end of year, just a rotation back down over a few weeks and possibly into Q1-24 once $257-$264 is touched, with the bottom of the channel as a target.
Have a watch, today’s update after close:
Plus @dl003 expects consolidation around here first, which may burn off a few days.
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I posted this question about IBKR to the retirement thread but I am repeating it here in hopes of a response.
For those of you who use IBKR to do CSP's can you tell me if you accrue interest on your cash that is collateral for the CSP? I am asking if you can "double dip" by accruing interest while you use the money to back the CSP. I called and asked a IBKR representative who confirmed this, but I thought I would double check with the power users here before going to the trouble to move my accounts. Thanks!
For those of you who use IBKR to do CSP's can you tell me if you accrue interest on your cash that is collateral for the CSP? I am asking if you can "double dip" by accruing interest while you use the money to back the CSP. I called and asked a IBKR representative who confirmed this, but I thought I would double check with the power users here before going to the trouble to move my accounts. Thanks!
not-advice
I've opened ICs in the past and decided that I won't any longer. I've legged into them on occasion, but I don't try them myself any longer.
The reason is primarily emotional. Instead of feeling like I always had a winning leg (true), I felt like I always had a losing leg (also true). Worse the losing leg always felt (and seemed) like it was heading towards a max loss (not actually true). The emotional side (stomach acid) was bad for me, so I made the decision to not do them any longer.
That being said I do enter positions with a similar idea (straddles), just that they are share backed ccs and csp. I get the same dynamic where I'm winning whatever direction the share price goes, but without the leverage that can wipe out a year of realized gains in a single particularly bad trade.
As with the ICs I used to do, I leg into the straddles as well. In theory I can and would enter both sides at the same time. In practice I'm just more patient than that, and that has translated to being out of the market or just barely in the market.
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No I have CC's but I have been making a decent amount of profit lately that taking a <$2 loss if we end up at $250 is not a big deal. I am also considering a roll up to $255 for tomorrow for around a $2.7 loss. I rather be free and clear instead of rolling to next week because I agree that we can possibly get an aggressive pump to P&D and also have better premiums since IV should be going up.
I see and agree, makes sense when you sell them for a good coin. I sold these for less than a buck, not gonna fly in my case. Nonetheless, hanks for clarifying
thenewguy1979
"The" Dog
Thanks Adiggs.
My theory for the play was if the stock is flat I just let both side decay. If one side go up I just close the other side. Then repeat if the stock goes the other ways. But I do get the heartburn if one side do fall DTM and the plays does required being nimble at times.
Im still in the experimenting stages. Been burned many times. There just so much you can learned from youtube or online trainings. Once I joined this group I have done much better thanks to all that put in their times to provide feedbacks to one another, especially for a funny looking dog like me
that once a while ask too many silly questions.Thanks Adiggs and Team.
yes you do. Also when writing Call Spreads or anything else where the funds serve as collateral only. (I've been using IBKR since ~6 years)
SpeedyEddy
Active Member
1 to 3 weeks, because further out we see SP that we will not reach at all with option-price = 5ct.
SpeedyEddy
Active Member
I think Cary is wrong and we will rip through $264 and have (a day or two later) a test of that line @$261, to go on up a lot like @dl003 ’s Patreon post. I do not think the fourth picture in that post will be unfolding, because leaving a wedge with force will test it only one time to take off. The power of coiling is now released and that momentum is probably enough to cross the downward wedge-line with a vengeance. Only 263-264 really holding or 261 breaching afterward as resistance will change my mind (qed). I am very bullish and feel like past November 2019. Every day a few procent and sometimes 4 or 5 with no significant corrections. But now I have the means and knowledge to profit other, than just holding stocks.
SpeedyEddy
Active Member
I am very happy all the automotive shares are (and will be going further) up, because when the man with the macro hammer shows up, these are the ones you can short rather than $TSLA. Lucid will fail, GM will fail, Vinfast will fail, VAG will fail. If Rivian sales shrink while CT is a hit, they too will fail, in that case even quicker than GM an VAG.
SpeedyEddy
Active Member
FYI this guess is not for today (250 call wall preventing that) but next week
thenewguy1979
"The" Dog
Was planning this move if we indeed rip next week
-255p/+250p/+260c/-270c exp 12/22
Net Credit .50 but can also ride upside.
Max gain $1000 max lost 447. Only downfall is we dump below 255. Sideway still win -up still win
Another variant to allow more upside and burn off the put leg
-255p/+250p exp 12/22 x 2 contracts
+260c/-270c exp 1/5 x 1 contracts
Net credit .80. If put leg burn off then free bet to upside and pocket .80
-255p/+250p/+260c/-270c exp 12/22
Net Credit .50 but can also ride upside.
Max gain $1000 max lost 447. Only downfall is we dump below 255. Sideway still win -up still win
Another variant to allow more upside and burn off the put leg
-255p/+250p exp 12/22 x 2 contracts
+260c/-270c exp 1/5 x 1 contracts
Net credit .80. If put leg burn off then free bet to upside and pocket .80
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So, yeah, I got myself into a right old mess week and have expose myself (oo errr!) to serious risk
Poor decision based on bad assumptions leaves me with:
100x 12/15 -c240 @$3.1
100x 12/15 -c250 @$3.15
100x 12/22 -c240 @$5.3
Written against shares, calls and LEAPS. TBH 200x are quite sustainable for rolling, 100x not as would be aganst 100x Jan 19th +c300 -> not a lot of room to play with there
On the plus side, already realised $20k on calls this week, plus I have 40x -p240 @$5.1 expiring today too, if the SP dips below 250 I can get out of the week break-even, with just bext week's -c240's in play, then would look to write 100x -c260's, the underwriting March +c280's gain decent value above 260, so a reasonabke risk to start knocking-off the -c240's (along with straddle puts)
Have also written 50x -p240 for next week and could write 50x more, but I'm wary of a reversal, has happened so many times in the past, experience has taught me to be wary of that, better to close-out gradually and controlled - these would be against TSLA and 2025/2026 LEAPS, so no real time stress there
But having 300x in play with risk of a squeeze is too much, will need to close out 100x totally and maybe roll 100x to next week to feel comfortable, could also roll the -p240's up to -p250 too, will see
And although this sounds really grim, I did realise $75k last week, so I can rationalise a bit of loss with that... oh yes, my 15x Jan 19th /c233's that I had written-off are worth arounf $35k, so selling those will help too (kind of a virtual gain there, bought them for $123 and assumed they got to zero, so +$25 now is less loss than I expected, maybe better to take those off the table now while they're worth something)
And one would really expect $250 to be a no-go for close today, no?
Poor decision based on bad assumptions leaves me with:
100x 12/15 -c240 @$3.1
100x 12/15 -c250 @$3.15
100x 12/22 -c240 @$5.3
Written against shares, calls and LEAPS. TBH 200x are quite sustainable for rolling, 100x not as would be aganst 100x Jan 19th +c300 -> not a lot of room to play with there
On the plus side, already realised $20k on calls this week, plus I have 40x -p240 @$5.1 expiring today too, if the SP dips below 250 I can get out of the week break-even, with just bext week's -c240's in play, then would look to write 100x -c260's, the underwriting March +c280's gain decent value above 260, so a reasonabke risk to start knocking-off the -c240's (along with straddle puts)
Have also written 50x -p240 for next week and could write 50x more, but I'm wary of a reversal, has happened so many times in the past, experience has taught me to be wary of that, better to close-out gradually and controlled - these would be against TSLA and 2025/2026 LEAPS, so no real time stress there
But having 300x in play with risk of a squeeze is too much, will need to close out 100x totally and maybe roll 100x to next week to feel comfortable, could also roll the -p240's up to -p250 too, will see
And although this sounds really grim, I did realise $75k last week, so I can rationalise a bit of loss with that... oh yes, my 15x Jan 19th /c233's that I had written-off are worth arounf $35k, so selling those will help too (kind of a virtual gain there, bought them for $123 and assumed they got to zero, so +$25 now is less loss than I expected, maybe better to take those off the table now while they're worth something)
And one would really expect $250 to be a no-go for close today, no?
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jeewee3000
Active Member
My -c250's, -c252.5's and -c255's expiring today sure hope so.
FEDiot Williams (mildly bearish) uring some cold water on the idea of rate cuts coming earlier than expected....
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