Executed just now. Selling puts is uncomfortable. Is the SP up yet!?!?!?
Selling long-term puts is a bit of a risky proposition since those puts will probably end up doubling in value over the next few months. Granted you are making 18% on your max-risk, which is quite good, but this ends up in one of two states:
- TSLA closes above $450 in Jan 22, so you don't actually get to buy those shares :'(
- TSLA is trading below $450 which brings into question the growth-rate of the company (I consider $450 to be severely depressed share price for 2022), in which case it might be that the fundamentals changed between now and then, and you don't want to be owning the stock :'( :'(
You can close them out when TSLA pops back to $900, but you'd probably end up making way more if you had just bought the $900 Jan 22 calls instead.
Plus if we do see TSLA at $450 between now and then, you can't actually buy those 100 shares because the cash-value of that would be tied up in underwriting the puts (unless you are okay with margin trading, and potentially being liquidated of your position in case of a black-swan event).
All of this to say, writing naked options (calls & puts) is scary. I tried to scrape some money this way, but it hasn't worked well for me, I don't have the stomach to see my positions at huge losses and feeling like I'm stuck and can't trade in and out as I'd like. I've found keeping things simple and trading momentum tends to work better for me. Good luck to you though. 18% ROI isn't too shabby, especially in the case where you are double dipping, and putting that 45k to work elsewhere (eg. SPY)