Wiki Selling TSLA Options - Be the House

[saniflash]

Is there a difference between time value and extrinsic? I have 10x -P300 6/20/25 that show $10.06 for time value and $1.91 for extrinsic. I’ve been monitoring extrinsic not to get close to $0.00 to avoid assignment. What’s the difference between that and time value?

None, extrinsic = time value

 

[mongo]

Is there a difference between time value and extrinsic? I have 10x -P300 6/20/25 that show $10.06 for time value and $1.91 for extrinsic. I’ve been monitoring extrinsic not to get close to $0.00 to avoid assignment. What’s the difference between that and time value?

Those should be the same thing, but the P300 are low volume so the last vs current bid/ask are $11 different, guessing that is throwing off the calculations.

 

[thenewguy1979]

I have diversified my weekly plays. Tesla been too sad lately.

But 175 seem to be bottom for today as a Macro reversal is underway.

Got to give it to Jenson for whatever he's smoking. Never seen such a constant upside like NVDA.
Just 3 weeks also I thought 560 was high.

 

[Jim Holder]

Here’s an updated EW view: Possible “iv” $210’s followed by “v” $260’ish and done with lows.

 

[thenewguy1979]

Today seem to be one of those crazy reversal day

A good thing indeed.

 

[Singuy]

Air pocket at 179.95, so be ready.

What's an air pocket and be ready for what?

 

[Jim Holder]

Finally a ray of hope, dealer deltas turn negative (bullish). Needs to build over the next few days to confirm:

 

[mongo]

What's an air pocket and be ready for what?

A quick drop further, say to 175...

 

[Patrick66]

Today seem to be one of those crazy reversal day

A good thing indeed.

Compared to the broader market I think that is an optimistic take. I don't see any strategies I want to take for today with TSLA... maybe tomorrow brings greater clarity.

 

[BornToFly]

How often is a Red Monday followed by a Green Tuesday?

 

[BornToFly]

I have +170/-195 March 15 BPS that I've been rolling for two years. I would like to see if it finally expires worthless in 6 weeks, but if the SP is below about 185 it is a Debit to roll it. I don't know if I bite the bullet and roll it AGAIN to Jan 2025 or keep hoping and praying.... Aargh.

 

[Jim Holder]

Mid-day QTA update

 

[SpeedyEddy]

How often is a Red Monday followed by a Green Tuesday?

intermediate answer before the master of data speaks: I guess 48.3 % (btw green Mondays are more than 50% of the time followed by red Tuesdays, would come from the top of my head)
BTW my question would be: On a bigger drop-monday: what does a normal Friday after that look like, up or down compared to Monday close?

 

[Max Plaid]

I have +170/-195 March 15 BPS that I've been rolling for two years. I would like to see if it finally expires worthless in 6 weeks, but if the SP is below about 185 it is a Debit to roll it. I don't know if I bite the bullet and roll it AGAIN to Jan 2025 or keep hoping and praying.... Aargh.

Could you roll it to a +170/-195 straddle? IE sell some calls at the same short strike?

You know I like my straddles, I find them very facilitative for getting out of trouble

 

[BornToFly]

Could you roll it to a +170/-195 straddle? IE sell some calls at the same short strike?

You know I like my straddles, I find them very facilitative for getting out of trouble

The problem right now is that the -195C pays a lot less premium.

 

[SpeedyEddy]

Getting the feeling that today's price action is not showing the power needed to go calling it a bottom in any way, yet.
Thinking about another round of -C selling, maybe a bit less aggressive, -205 or so, for 1-2 months out.

 

[Max Plaid]

Getting the feeling that today's price action is not showing the power needed to go calling it a bottom in any way, yet.
Thinking about another round of -C selling, maybe a bit less aggressive, -205 or so, for 1-2 months out.

Yeah, I know we got a bit of recovery, but it all feels extremely bearish, hence my decision to sell very aggressive calls at 175 and roll my puts down to the same strike - not safe, by any means, in either direction, but a lot better in case of more downside than -p190's

 

[Max Plaid]

The problem right now is that the -195C pays a lot less premium.

Maybe not, but the way I always look at it is that you're hoping the short puts expire OTM, if that looks like it might happen then you've plenty of time to roll the calls up and out, if the puts stay ITM then it's money for nothing

 

[Jim Holder]

Right on cue...

 

[SebastienBonny]

Keep an eye on the time value. As that approaches zero, your likelihood of assignment increases a lot. It is linear that probability.

I've got some 210 puts that I'm rolling along. When they are that deep in the money my pattern tends to be rolling a full week prior to expiration AND to roll out a month - typically to that month's monthly expiration rather than one of the weekly expirations. The extra time creates a bit of credit, as well as a bigger time window for the rather large turnaround that will be needed for something that deeply ITM to get back to the money.

Of course that's if you'd rather not buy the stock at that price. Given those are CSP then an entirely reasonable approach is to take assignment when it happens and start selling cc. Just getta get assigned at 220 or above on those calls so that you end up "stuck" with earning the premiums of the extended position, and not losing money on the strike to strike change.

The point is getting some income as well.
The first option isn’t profitable at all right now as rolling a month seems about rolling for 0 premium.
That’s why the second option seems the better one.
I don’t mind selling calls a tad beneath cost base, cause you always have a possibility somewhere to roll up/out.