What did you do when it went to $108 last year ...?
It was tough but ultimately good that I held on ... we even saw SP go back to 270 where i was tempted to sell all stocks in personal. Missed by holding on for 4-5 days, because I wanted long term capital gains to kick in around Dec 27th.
Well stupid me bought 9000 TSLA @$300 just before the 3:1 split, on the strong conviction that the stock would pop, of course it did the opposite but I held like a beast all the way down, even acquiring 2800 extra TSLA through assigned puts when it went into free-fall
I even managed to escape the initial reversal, even though I was selling some -cATM's, and traded on the way up very successfully, until May when we got the gap up from 146, then a pull-back, I again had one of my "strong convictions" that this gap would be filled, yolo's on 100x -c150's and the stock went to $165... I then had a decision-point, to let them go or take quite a big loss, but as I had a huge loss on GOOGL calls having over me I decided to sacrifice the shares and with the cash loaded 60 Dec 2025 +c140 and +c200 LEAPS, then again "strongly convinced" the stock would trade sideways for a bit, wrote 100x July -c200's against them, and the stock promptly rallied up to $300
There's a clear pattern of betting the farm on "strong conviction" and being wrong, something I've now addressed with my "burner calls/puts" allowing an escape from any nasty ITM situation on weeklies
And BTW, it was $101.81 in pre-market on 6th Jan 2023...
Thanks. So in this scenario it means for example, selling 37 CCs against the 37 long calls I have, aiming for about $3.50/week ($12,900) which is about $175-$185 strike down here (aiming for $10/week is ATM and kinda risky), and roll up and out if needed. In two months that’ll bring in about $100k if my math is correct. Not bad. That’s in addition to my regular writing safer further out CCs on the rest of my longs (scalping as I’ve been doing). Although with some caution in case we get a strong DCB or other surprise that may run them over (as
@dl003 suggested to short down here at our own risk).
Also, is there any “protection” the bought calls are giving me that I am writing against, and what is it?
Having slept on this I thought of a better idea... the only calls you really need to worry about right now are the April & May, forget about the LEAPS, plenty of time to resolve those with weekly shitcalls
So you "could", sell -cATM for the number of weeklies you have, leave the -c open to see if they expire, if they do, use the premiums to close out X number of the weeklies at break-even
Doing it this way you use the LEAPS as "safety" contracts for an escape-roll
If the SP pops, then the long weeklies go back up in value, you roll the short weeklies out
If yous see what I mean...