Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[saniflash]

OTM Bull Put Spread

burned myself big time with OTM put bull spreads in 2019 due to too much greed and thus overexposing myself....underestimated how much the stock can go down short-term. expensive and valuable lesson

 

[Zero CO2]

OT, but: If you wanted a Tesla decanter without the Tequila they are now on sale for $150: Tesla Decanter

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doing my small part for Q2

 

[Criscmt]

What is max pain for today?

maximum-pain.com/options/TSLA says 652.50. I guess, this is per contracts data at the open of the day.
MMs will likely give their best shot at defending 700.

 

[Artful Dodger]

What is max pain for today?

$652.50 but this is skewed due to so many open puts at 450 & 480... not sure what the more realistic Max Pain would be, but I'm betting on a close below 700 due to the call wall there -- once volume tapers off in the PM, I expect MMs to push it down, potentially to $665 or so.

As of 7 am today, there was no single inflection point in my "Call-Put Breakpoint" (C-P bkrp) analysis. However, I've highlighted the Strike Price region centered on 680 as an area of interest for MMs, where the cost to them of either a SP rise or fall has a net neutral effect: (see Yellow highlight below)

I don't think Max-Pain is in play: too many Puts in the way (including a 9.2K "Put Wall" at the 670 strike), making a move to M-P quite expensive for MMs.

Let's watch how Options Volume develops during the day for a clue as to the point of interest.

Cheers!

 

[Drezil]

doing my small part for Q2

View attachment 677632

... still waiting ...
delivery-estimates were june/july .. after 2 months of silence on the order-state ..

 

[Drezil]

As of 7 am today, there was no single inflection point in my "Call-Put Breakpoint" (C-P bkrp) analysis. However, I've highlighted the Strike Price region centered on 680 as an area of interest for MMs, where the cost to them of either a SP rise or fall has a net neutral effect: (sell Yellow highlight)

View attachment 677637

I don't think Max-Pain is in play: too many Puts in the way, making that very expensive for MMs. Let's watch how Options Volume develops during the day for a clue as to the point of interest.

Cheers!

Tons of 680 puts traded.
Call-side has 680/685/690/700 in ascending volume.

So i would bet on 680 for today.

 

[Yoona]

What is your Broker's fee per Contract? With my Broker's $20 per contract fee, the above strategy would be quite costly (especially while learning Options trading). Eg: those 40 Puts alone would represent around 800/mth in fees, but it sounds like that's not the majority of your activity.

How do you manage the fees? What's your "win/loss" ratio? What does it need to be to break even? TIA

Cheers!

my TD DI is 9.99 per transaction + 1.25 per contract

ie Sell 3 Puts = 9.99 + 3(1.25)

 

[Artful Dodger]

Crystal ball says 2 for 1 split when SP gets to 841.38

How about 5-for-3 at $701.15 instead? 2 weeks?

Cheers!

 

[Knightshade]

Is it just the US where options trading is basically free? (I pay 65 cents per contract)

 

[thx1139]

doing my small part for Q2

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You people really going to make me spend $150 on an empty bottle.

 

[StealthP3D]

burned myself big time with OTM put bull spreads in 2019 due to too much greed and thus overexposing myself....underestimated how much the stock can go down short-term. expensive and valuable lesson

Overall, I've made money on options, quite a lot of money actually while risking very little. And I want to keep it that way. The trick to my style is to only play for the really big wins and only play when the odds swing wildly in my favor. Nothing fancy. Patience and restraint is key.

Schwab charges a flat rate of $0.65 per contract. Which is perfect for me because I tend to only buy 2-10 contracts per transaction,

 

[juanmedina]

Exactly the same here! I manage my mom's options and the TSLA Puts income (after taxes/fees) is more than enough to pay for her monthly groceries + caregiver salary. For extra safety and less use of her cash, I roll OTM Bull Put Spread instead Cash Secured Put. Didn't invest the account in TSLA stock coz she is in advanced age - steady income is priority over growth. Thank you, Elon.

haha I do this too for my parents but on a small account. I sell covered calls and I am usually able to make more then what they make with their SS which is very small because they moved to the states in their late 40's. This week didn't turn out so great.... don't tell them .

 

[CanadaEV]

Exactly the same here! I manage my mom's options and the TSLA Puts income (after taxes/fees) is more than enough to pay for her monthly groceries + caregiver salary. For extra safety and less use of her cash, I roll OTM Bull Put Spread instead Cash Secured Put. Didn't invest the account in TSLA stock coz she is in advanced age - steady income is priority over growth. Thank you, Elon.

I wonder how many of us here do this kind of thing for friends and family. I bet it’s quite a few. One of the many perks of Tesla/TSLA interest

 

[Zero CO2]

View attachment 677639
... still waiting ...
delivery-estimates were june/july .. after 2 months of silence on the order-state ..

Q3... Q4 ....

You people really going to make me spend $150 on an empty bottle.

do it ... you know you want to

 

[thx1139]

Q3... Q4 ....

do it ... you know you want to

Damnit! You did it. Khan!!!!!!!!!!!!

 

[dhanson865]

Moderator:
I’m never going to go after any poster for ambiguously using “GM”, leading the reader to wonder if it refers to a car company or an income statement metric (as it’s usually obvious), but - in that the following abbreviation is dominantly within TMC a Tesla-specific one, PLEASE do not use “SC” in your posts. I long have championed “SvC” for Service Centers and “SpC” for Superchargers, but anything that distinguishes those two very different terms is how you should treat your fellow readers.

Proper eqtique for abbreviations in written word is to always use the long form and the abbreviation in your first use and then use the abbreviation thereafter.

Something like : I went to the Service Center (SC) to do something the other day, the SC was closed so I went somewhere else.

So long as you define your abbreviation up front and use it consistently through out the rest of the post it's so much easier to understand.

If you are only going to use the term once, like a one line post saying "The IV is low today" you just shouldn't abbreviate it at all. Single use per post should be the full words not the abbreviation for anything where that abbreviation can mean more than one thing.

If you want to use TANSTAAFL in every post at least I can google that and have no doubt what you meant. Two letter and Three Letter abbreviations (TLAs) will not be that clear, unless you define them on your first use in each post.

Down with TLAs! Up with TSLA!

OK, I'm fine with not defining stock symbols, on a per post basis. Just so long as you are defining your acronyms, then we know what's left must be a stock symbol.

 

[JRP3]

Did I somehow end up in the options thread?

 

[SOULPEDL]

It just felt right...

 

[dl003]

Did I somehow end up in the options thread?

There's an educational options thread and a degenerate gambling thread. You gotta be more specific.

 

[ReddyLeaf]

As of 7 am today, there was no single inflection point in my "Call-Put Breakpoint" (C-P bkrp) analysis. However, I've highlighted the Strike Price region centered on 680 as an area of interest for MMs, where the cost to them of either a SP rise or fall has a net neutral effect: (see Yellow highlight below)

View attachment 677637

I don't think Max-Pain is in play: too many Puts in the way (including a 9.2K "Put Wall" at the 670 strike), making a move to M-P quite expensive for MMs.

Let's watch how Options Volume develops during the day for a clue as to the point of interest.

Cheers!

Tons of 680 puts traded.
Call-side has 680/685/690/700 in ascending volume.

So i would bet on 680 for today.

Bingo, 679.89 is my guess. Oh, and a couple of those p670s have been rolled to next week for $15/sh credit. I could have left them to expire worthless, but…. I really like skimming a small bit of profit each week and buying a few shares, kinda like dollar cost averaging, with other people’s money. Edit: I think this type of discussion is absolutely on topic because large options trades can affect weekly prices. I’ve learned a huge amount from everyone here and how various things affect TSLA, the company, AND the industry (e.g. negative headlines on CNBC, naked shorting, analyst price targets, monthly/quarterly sales estimates, stock splits, S&P addition, battery day, AI day, FSD, etc.). Anything that affects the company/industry also affects the short and long-term stock price.