Very close for comfort - but you don’t make money being comfortable, do you?
I kept the # contracts low and they’re backed by 1/26 LEAPS. I am worried about FOMC but a drop would still be more painful than a rally for the rest of my position.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
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Very close for comfort - but you don’t make money being comfortable, do you?
I kept the # contracts low and they’re backed by 1/26 LEAPS. I am worried about FOMC but a drop would still be more painful than a rally for the rest of my position.
Mary, Mary quite contrary, how does your company grow...?
With my short puts now in a happier place, turned my attention to the call side of things, especially as I have a busy week ahead in the day job and Friday evening I'll be travelling to a music festival in Utrecht, so best to roll things out today
Thanks to the dip: BTC 100x 2/2 -c185 @$7.7 (-$3.6) -> STO 80x 2/9 -c185 @$9.9
A free roll for 20% less contracts on the same strike, pleased with that...
"Poor man's covered call" - If my short calls do go DITM, I can close them out 1:1 with my 1/26 +100c. Or I could roll them for the next 2 years. My point was just that all my shares are uncovered, so I'm still happy if we do rally.
Interesting. Would I be able to use any of these I have to do the same and write ITM a few CCs for this week to try it?
10x +C255 9/20 @18.51 (now 10.45; red -43%)
15x +C300 1/17 @15.97 (now 10.10; red -36%)
5x +C150 12/2025 @109.36 (now 75.97; red -30%)
Since they're bought options is the idea to request to exercise them (do they have to be green?) to cover the short shares if the PMCC goes ITM?
Just trying to learn the mechanics.
You’d want the long strike lower than the short call strike so the c150 would work. The short calls don’t need to be ITM.
There is a risk on a big rally that the near-term short call loses money much faster than the LEAPS makes money.
There are no mechanics, it’s just that you know that a higher strike near-term call will never be worth more than a lower strike far-out call. So you just STC the LEAPS and BTC the short call at the same time if that’s what you need to do.
I found this helpful article on a Poor Man's Covered Call - Poor Man's Covered Call - What is it?
If I'm following it right, you could use your 5x +C150 12/2025 to write short calls against. The long call needs to be ITM.
Thank you. Since the 5x +C150 12/2025 are down -30% STC will lock in the loss so it may not make sense in this case (?). Perhaps this works with LEAPS that are green?
I think a STC only happens if the short call sold against it is allowed to expire ITM, and it's needed to cover the short call, otherwise, the long call remains open, the short call expires, and a new short call can be written until the long call expires.
Many puts cleared up, lots of calls added for this Friday:
Next week and week after doesn't look very promising as of now 
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2/9 (may be due to old legacy options carried over from last year)
:2/9 (may be due to old legacy options carried over from last year)
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It could lock in a loss for your LEAPS if we rise from here and you have to STC. Or it could cushion further loss if we drop from here or stay flat. Same risks as always selling calls. You just never know.
Long calls don't need to be in the money. Short call just must be further out, whether it is for same date(vertical/diagonal ), or a different date (calendar spreads)
That's a negative though isn't it? With Puts being cleared out, the main goal of MM's is going to spoof the stock under those call walls.
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Long call being ITM is a specific broker rule. I can write -c200's against -c300's if I want, behaves exactly like a spread for me
Far be it from me to crush your optimism... but I don't feel like that is what the market is telling us right now. I think you are going to need to be patient for a few weeks to see $210. If this week goes well for earnings then I could see more optimism for next week, but I expect consolidation around $192-195 for now.
Alphabet appeared to be a small beat for EPS and revenue, but it's down >4%
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