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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
thenewguy1979
"The" Dog
SpeedyEddy
Active Member
Yeah, convinced I won’t get caught with the ATM/ITM calls I wrote today, maybe after a roll or two (bringing in even more premium).
Depends on where we are in the dead cat. If it's close to the end, then I'd not sell puts. When I predicted bottom on Friday and called 235 to be the bottom, it was a good time to sell puts, and maybe there will be a few opportunities like that between now and ER, but overall, the trend is sideway -> down for the time being so be selective when you sell puts, especially if aiming for high premium.
thenewguy1979
"The" Dog
ever seen such a play? No way will be a winning hand as that required a closing at 265 Friday.
The farther out to the current SP the cheaper it get. More like a lottery play
The farther out to the current SP the cheaper it get. More like a lottery play
Updated tactical objectives for 2024:
- HODL shares
- Cap total $TSLA exposure by gradually harvesting in $50 increments beginning at $300
- Sell CC against 80% of shares
- 60% 10-11 DTE 12% OTM -- moderately cautious, continuous rolling
- 13% 270 DTE 25% OTM -- close at 50% gain and repeat (scalping)
- 7% 10-30 DTE 8%-10% OTM -- aggressive
- 20% uncovered for $300 and $350 sales
- 19Apr$300 --> 15March$270 (+$1.97, bringing a tranche rolled out from DITM down and in, targeting expiration)
- 20Sep$300 --> 21Jun$270 (+$0.83, same; 80% of tranche, hold 20%)
- sto 19Jan$265 (10-11 DTE 12% OTM, btc at 90% return)
- sto 20Sep$305 (~250 DTE 25% OTM, btc at 50% return asap and repeat)
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What do you mean by CB ? can you do CC specifically for leeps? and how ? ThanksA few musings about what I find guides my trades based on my experimenting:
1) Laddering! Big time helpful to me. 10-15 CC contracts at a time at local daily pops, most often during opening 15 minutes (this past summer/fall this pattern of pop/fade was exceptionally reliable). And closing when I see decent green. It annoys me to see green disappear as SP recovers. While I definitely leave money on the table during times when SP keeps going down further, I’m pulling in gains consistently while also removing risk by closing the CCs (!) and by watching the SP movement I gain the freedom of choosing new better, sometimes higher strikes (and often higher premiums on the same CCs I already closed) based on the data the unfolding day and week presents (this edge is underrated IMO). I haven’t needed to roll much if at all in months. I don’t know if this means I am too risk-adverse or just lucky. The money is good so I don’t really care
2) I choose strikes/DTE not more than 0.10-0.13 delta +TA UNLESS I expect a TA/EW dump between now and expiration (thanks @dl003) then I’ll chance even 0.20-0.30 +TA (like -C300 3/2024, expecting a dump in or around Feb, but likely not exceeding $300 anyway if not and time to fix if yes). Always prepared to roll up and out if surprised. And since I’ve laddered, only some will be in peril. The rest I can close for whatever gains they have, big or small. Yes, this means sometimes what I got $1.50 for I could have gotten $8.00 had I sold later after a major pop, but that doesn’t happen very often and meanwhile the consistency of income wins out for me.
3) I only choose strikes I’m okay my shares getting called away at (I have a tranche at $298 CB and a tranche at $358 CB). I take a bit more chances on closer DTE (7-10 days) when I have higher conviction that SP won’t exceed a certain level (like $270 recently).
4) I remain hyper-aware of the waves and trends, so when we finish a run, congest, and come off highs (like $265 recently), I give myself permission to become a bit more aggressive in selling more contracts and choosing closer strikes when selling CC’s. Same for the inverse, when we carve out a seeming low (like $235 now) I’m more careful and go higher out on strikes and increase short puts. If I mess up and can’t roll for credit I just rebuy or sell the shares that get called away or put to me, hopefully with not too much damage.
5) I don’t have the guts or nerves yet to sell ITM+near expiry CCs (and never -P) and do so only on rare occasions, like when we approached $300 I sold a ton of CC’s for $310 and with the high IV then it was a great sale. I was okay to let the shares go at that price, and was even more thrilled too when it never hit and I kept the shares and the premium. @dl003 does this well and I hope to learn more and try this over time as my trend-spotting gets better.
6) Like a pot of hearty soup always on the stove in the winter, in addition to my weekly scalps I always have on decent-sized exposure for large sudden swings up (-P LEAPS) and down (-C LEAPS), leaning heavier on each side depending where we are, a trough or top. I like LEAPS since they offer time to fix things if I made a bad choice and they move quite strongly on wide SP movement too. While I used to use far out LEAPS for these (2025/2026), @Max Plaid taught me the value of having some closer-dated LEAPS (like September 2024) which open up rolling opportunities and I add some closer in like this as well to great effect.
I’m still learning and experimenting and I’m sure there’s more I can add to the above. And I’m really no expert. Credit really goes to the team here and really @MikeC who taught me how to extricate myself from a mess I made in June 2023 and I’ve been building on the foundations I’ve learned from him during that debacle, and the great ongoing education here from @Max Plaid and @dl003 and the rest of you.
Bottom line for me is the extreme importance of effective risk-management and keeping greed and impatience in check as it underpins the success of any strategy.
Current P/C ratio for the next few months
• Feb 0.84, Mar 1.07
• Have a look at May 1.20 and July 2.27
What's going on in July?
• Feb 0.84, Mar 1.07
• Have a look at May 1.20 and July 2.27
What's going on in July?
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john tanglewoo
2012 Roadster Owner
What is Gamma Exposure (GEX)? | Quant Data Help Center
An explanation of what Gamma Exposure is and how it can be used.
This is my understanding.
The exposure MM have with a 1% move of the underlying in either direction. The MM will hedge accordingly by trading the underlying, supplying or accumulating. The long bars are the magnets, where price tends to stick, resulting from the anticipated need for balancing.
EDIT: spelling errors , that's the updates
If MMs are “long gamma,” they are buying as sp decreases (move up towards tall green walls) and selling as sp increases (move down towards tall green walls) especially around large OI.
If MMs are “short gamma,” they are buying as sp increases (move up towards tall red walls) and selling as sp decreases (move down towards tall red walls) especially around large OI.
You can use the screenshot to identify "groups of strikes" with tall gammas. TSLA tends to gravitate towards the strike(s) with the biggest exposures and will magnet to them.
Elevated exposure at groups is more indicative than one wall.
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BTC all overnight CC's for +$3,700, up $5,400 for the week so far.
Will reopen some if we lose $234 and hold below.
Will reopen some if we lose $234 and hold below.
SpeedyEddy
Active Member
Just (BTC) closed -C235 and -C237.5, Rolled them up to (STO!)-C240, was getting a bit nervous on those wicks below the minute candles (so a bit to early in hindsight, but still earning more than 10%, so 50cts each -C, only some theta in fact)
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