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Wiki Selling TSLA Options - Be the House

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So many bearish people here that I am starting to think that we'll go up after earnings.
People on this forum are more "inform" then most casual onlookers out there. If people here are turning Bearish imagined what the majority are feeling out there. When every person, their mom, their grandmother, and their great grandmother are Bearish....perhaps time to re-rethink the strategy. Market is not making it too easy right?

Saying that I only bought some +240C for this Friday. Let hope they turn into Filet this weekend.
 
If you sell a -250C, that is a short call. You are basically shorting the stock/expecting it to go down.

The terms short and long confused me for years until I realised it was actually quite simple:

SHORT = something you sold to open a position, can be puts, call or stock
LONG = something you bought to open a position, can be puts, call or stock

Not to be confused with selling a LONG position you already hold or buying back a SHORT position you previously sold

When selling short the terminology is Sell To Open (STO), then Buy To Close (BTC), the converse being Buy To Open (BTO) and Sell to Close (STO)

And just to tweak @BornToFly's comment above, when establishing a short position - which is what we mostly talk about here: "Selling TSLA Options" - you're ultimately betting the the stock moves favourably for you, which often can just mean it doesn't move at all. Options are a function of both strike price and time, you sell a call or a put for the future, if the share price were to not move at all, regardless of what you sold, you would make a profit from it whether it's in the money or not, because the time-value (also know as extrinsic and Theta) will have diminished just leaving the intrinsic value, which is the actual $$$ between the SP and the strike at expiry

So you're not necessarily looking for an option to expire out-of-the-money (OTM), just for the price not to move too much against you

This is why selling options tends to win 85% of the time - you don't actually need to be correct in your prediction/guess, just mostly right

But this isn't to say it's a free-lunch either, many of us have had trades go against us, very fast and lost hundreds of thousands of $$$, even $millions literally overnight

Trading options is incredibly risky, even when you play it safe and if you're new to it you should take extreme care, preferably do some paper trading for a while, although that doesn't evoke the same emotional response as having real skin in the game, but keep your trades very small and don't think if you get a few weeks where you win some money that you're a genius, you're not, you will get bitten in the ass at some point, and it will hurt

Really, take care and ignore what most of us do here, it's too risky for the vast majority of folks
 
The terms short and long confused me for years until I realised it was actually quite simple:

SHORT = something you sold to open a position, can be puts, call or stock
LONG = something you bought to open a position, can be puts, call or stock

Not to be confused with selling a LONG position you already hold or buying back a SHORT position you previously sold

When selling short the terminology is Sell To Open (STO), then Buy To Close (BTC), the converse being Buy To Open (BTO) and Sell to Close (STO)

And just to tweak @BornToFly's comment above, when establishing a short position - which is what we mostly talk about here: "Selling TSLA Options" - you're ultimately betting the the stock moves favourably for you, which often can just mean it doesn't move at all. Options are a function of both strike price and time, you sell a call or a put for the future, if the share price were to not move at all, regardless of what you sold, you would make a profit from it whether it's in the money or not, because the time-value (also know as extrinsic and Theta) will have diminished just leaving the intrinsic value, which is the actual $$$ between the SP and the strike at expiry

So you're not necessarily looking for an option to expire out-of-the-money (OTM), just for the price not to move too much against you

This is why selling options tends to win 85% of the time - you don't actually need to be correct in your prediction/guess, just mostly right

But this isn't to say it's a free-lunch either, many of us have had trades go against us, very fast and lost hundreds of thousands of $$$, even $millions literally overnight

Trading options is incredibly risky, even when you play it safe and if you're new to it you should take extreme care, preferably do some paper trading for a while, although that doesn't evoke the same emotional response as having real skin in the game, but keep your trades very small and don't think if you get a few weeks where you win some money that you're a genius, you're not, you will get bitten in the ass at some point, and it will hurt

Really, take care and ignore what most of us do here, it's too risky for the vast majority of folks
Here we learned to wait for Max to dropped his Wallet before we go Long. His action trigger seismic reaction from the stock price.
 
Might as well some NVDA short call vertical spreads ....
..what goes up ...
Yeah, it looks about time, but ER is far away (2/21) so it can run a lot before we get to see the real growth, so sell the news for sure if SP keeps on rising.
BUT "Don't try to shoot down an ascending rocket with -C" (opposite of falling knife is also true).
Wait for a 7% drop at least, is what I would do (or -C on 2/20 no less then $50-70 above SP 2 weeks to a 1 month out.
Tesla options it should be about? Here we go.
Tomorrow will be another day trade day I guess on which I sell and buy all kinds of ITM uncovered options of which I will inform you on action (as per usual (holidays are over))
momentarily option holdings:
- TSLA NASDAQ.NMS Jan19'24 200 PUT
- TSLA NASDAQ.NMS Jan19'24 265 CALL
- TSLA NASDAQ.NMS Mar15'24 300 CALL
- TSLA NASDAQ.NMS Mar15'24 310 CALL
 
Damn people are here actually shorting NVDA/AMD? Are you guys just randomly shorting because it has such a crazy run up or are these informed decisions?
you're basically saying people are just making option trades randomly and making uninformed decisions. Not sure what kind of response you're expecting but your posts in this thread are pretty negative
 
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you're basically saying people are just making option trades randomly and making uninformed decisions. Not sure what kind of response you're expecting but your posts in this thread are pretty negative
Sorry, I should be more specific. Are the options being traded looking at charts or charts+ company deep dive? See I know this thread is very chart heavy but at least everyone here are very informed with Tesla's business. Not sure if people are as informed with Nvidia's business...
 
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Me no shorting NVDA. Dont want to burn all the remaining hairs left on my butt. Just observing from couple miles aways.

Quite some times we mentioned other non Tesla stocks mainly just to show correlation, nothing more.

And no, no random play here. Every move is calculated to an extreme precision. You haven't seen Yoona’s and Jim’s charts and Dl003’s TA analysis?

You may have mistaken us for those other guys on the cannot be name reddit forum. :)

JK aside - any decision made on other stocks are usually made by the individual. Not much will be discuss here beyond Tesla.
 
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The person I replied to and the person who he replied to. Folks talking about Nvidia.

I know I'm not on that list, but I am shorting NVDA through a 01/19/24 -540c/+600c BCS that was opened a few weeks ago. It was part of a strangle with the put spread having been closed at a 90% profit today. I rolled this to a 02/16/24 -560c/+620c BCS and opened a new +400p/-460p BPS. But then I'm the resident gambler, so your initial reaction is probably not too far off.
 
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