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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I'm confused: I don't view -180p / +185p as a bull put spread; to me, that's a bear put spread since the long put is the higher strike. Is this a typo, or just a difference in terminology?
(Put differently, is this position intended to be profitable if TSLA is below $185 at expiry, or above $185 at expiry?)
It's not an ordinary put spread.
+2 185P paired with -3 180P. The breakeven point is 168.2. Above 168.2 by 3/22 it'll be in profit.
For what it's worth, here are my recent trades and my current thinking:
I let a batch of 3/1 $200Ps expire worthless on Friday. Oof.
But I rolled some to 3/8 $200P. Yay.
I took profit on some of them at $190. Oof.
But not all of them, and I also hold a bunch of 3/28 $170s that are up bigtime. Yay.
I considered opening some Jan '25 -c200s on Friday, but didn't. Oof.
But I did open them on Monday open and they're already down ~30%. Yay.
But I didn't open as many as I could have. Oof.
At this point, I'm sufficiently wary of a headfake to the upside and covered to the downside that I am being cautious with shorting in the hole here. @dl003's analysis resonates with me. I tend to think we're going down, but would like to leave myself opportunities to take advantage of dead cat bounces or upside surprises, so I'm not all in at this point.
I let a batch of 3/1 $200Ps expire worthless on Friday. Oof.
But I rolled some to 3/8 $200P. Yay.
I took profit on some of them at $190. Oof.
But not all of them, and I also hold a bunch of 3/28 $170s that are up bigtime. Yay.
I considered opening some Jan '25 -c200s on Friday, but didn't. Oof.
But I did open them on Monday open and they're already down ~30%. Yay.
But I didn't open as many as I could have. Oof.
At this point, I'm sufficiently wary of a headfake to the upside and covered to the downside that I am being cautious with shorting in the hole here. @dl003's analysis resonates with me. I tend to think we're going down, but would like to leave myself opportunities to take advantage of dead cat bounces or upside surprises, so I'm not all in at this point.
Likewise. Any CCs I’m selling again around here are for July/August >$230 which should leave time and strike headroom for any up surprises but comfort for the more likely down.
I normally sell calls for income and don’t have much experience buying puts. Though when I did recently they were easily profitable since we’re in a downtrend.
Due to the uncertainty and current sentiments I’m thinking of buying 10x +P180 6/21 (adding extra time so it doesn’t fade on me as we approach the target) @~$17.00, to buy some protection and exposure to gains from any large drops. Cut if we get back over $185-$190.
A couple of questions:
1) Is buying straight puts like this not advised? It’s $17k afterall.
2) Is there a better/cheaper way to get protection and exposure to similar gains from a huge drop?
I’d like to add that I’m very +delta heavy with longs, +C near and LEAPS, and -P that can suffer down to $150. No margin. Just possible maintenance call/assignment risk for the short calls if TSLA goes below $150
Thanks.
Due to the uncertainty and current sentiments I’m thinking of buying 10x +P180 6/21 (adding extra time so it doesn’t fade on me as we approach the target) @~$17.00, to buy some protection and exposure to gains from any large drops. Cut if we get back over $185-$190.
A couple of questions:
1) Is buying straight puts like this not advised? It’s $17k afterall.
2) Is there a better/cheaper way to get protection and exposure to similar gains from a huge drop?
I’d like to add that I’m very +delta heavy with longs, +C near and LEAPS, and -P that can suffer down to $150. No margin. Just possible maintenance call/assignment risk for the short calls if TSLA goes below $150
Thanks.
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this is the perfect exemplitive narrative for the options trading thread.
But, technically you’d want to have at least ONE MORE YAY, than oof. Surely you can solve that by EOW.
I tend to buy lower strikes than current and closer in, to get higher returns… farther out and close to ATM is more about protecting position, IMHO than profiting from a directional move. Also, to profit more significantly from buying the protection that everyone will WANT, WHEN the stock is going down, is to buy it when NOBODY WANTS it, and we’re past that point now. Just my thoughts. NFAI normally sell calls for income and don’t have much experience buying puts. Though when I did recently they were easily profitable since we’re in a downtrend.
Due to the uncertainty and current sentiments I’m thinking of buying 10x +P180 6/21 (adding extra time so it doesn’t fade on me as we approach the target) @~$17.00, to buy some protection and exposure to gains from any large drops. Cut if we get back over $185-$190.
A couple of questions:
1) Is buying straight puts like this not advised? It’s $17k afterall.
2) Is there a better/cheaper way to get protection and exposure to similar gains from a huge drop?
I’d like to add that I’m very +delta heavy with longs, +C near and LEAPS, and -P that can suffer down to $150. No margin. Just possible maintenance call/assignment risk for the short calls if TSLA goes below $150
Thanks.
View attachment 1025217
Thanks for the insights! Will keep in mind.
Yeh, I know what you mean we are past the time to be buying puts, although if we may still have a $30-$50 elevator exposure downward lurking behind the curtains it may be time nonetheless, or is that just anxiety/fear speaking?
Optimistic Gremlin in ear: Lousy 2024 already priced in. Lowest we’ll go is $160 and bounce.
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They're trading at 1.4 - 1.6 now. I'm already in the green. If you feel hairy about it, just get out now.
thenewguy1979
"The" Dog
Market seem to be in Euphoria mode today. Nothing seem to turn it red.
Guess this along with any reversal is a chance to buy those Puts when no-one want them.....thinking we are back up.
Let see if we can make a recovery into green today.
Happy to let them ride, like you said they can become profitable as we trade in range through 3/22. Unless you're closing yours too then I'd follow. Let us know pls when you do.
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thenewguy1979
"The" Dog
dc_h
Active Member
P&D not likely to help, unless big surprise. Tesla energy deliveries, which won't be seen until earnings have potential upside. I feel safe moving my April CC's from 250 to 225 at this point. I moved 3/15 CC's at 215 to 3/8 at 190 for a small credit. I don't want to get too agressive selling CC's. Can get tempting to get too close to the fire on the way down and make up for paper losses and then have realized losses and miss paper gains when / if things turn around. I left my May 2024 250 cc's where they are. Happy to lose shares at 250 for now.
I'm thinking battery backup / generator backup.
Just realize if one buys ATM puts and the stock goes down, one will really only ever get a buck for a buck (plus some declining portion of the extrinsic value and theta can be a beast), so it’s a safer way to SHORT, but not a levered way to PROFIT.
thenewguy1979
"The" Dog
Even though my wallet got lighter this morning I no longer have the nagging fear of being assign on those -192P contract.
The news seem to get worse everyday. Now projected lost in Berlin is a billion.
What next? Elon selling his stock? Jonas got to scratch his butt hurt after months of pumping the stock?
The news seem to get worse everyday. Now projected lost in Berlin is a billion.
What next? Elon selling his stock? Jonas got to scratch his butt hurt after months of pumping the stock?
ProfessorZoom
Member
TESLA'S BERLIN PLANT TO REMAIN WITHOUT POWER TILL END OF NEXT WEEK - BILD
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