trading

[defc0n]

Never saw a point ahead of earnings I was comfortable with. Might day trade it tomorrow if I think I’m seeing a familiar pattern.

Just barely above break even right now on my S&P short again at the moment. Just taking a gamble this time to see if it breaks down after failing to really convincingly clear 3000.

If we are going to get another panic meltdown this year, it will happen earlier than last year as people try to get ahead of it this time. Not really seeing it at the moment but there still seems to me more that can go wrong than can go right.

if brexit, impeachment, and trade war concerns all diminish, it will likely be off to the races again after 3000 and all time highs get cleared. Don’t think the market puts a whole lot of value on brexit, and historically impeachment concerns had a very temporary market effect.

seems everyone is playing chicken around 3000 and can’t decide what to do at this level near ATH.

 

[EVNow]

The IV on TSLA is monstrous now. 128% ATM for this week's calls. Will probably be at 60% within a few minutes tomorrow morning.

Almost impossible to make any money with less than $30 movement. It doesn't look like a quarter where I'd expect that kind of movement - I might completely sit out this quarter.

 

[pz1975]

The IV on TSLA is monstrous now. 128% ATM for this week's calls. Will probably be at 60% within a few minutes tomorrow morning.

Almost impossible to make any money with less than $30 movement. It doesn't look like a quarter where I'd expect that kind of movement - I might completely sit out this quarter.

Sell deep OTM calls and puts - it's worked every ER for me for a few years now. Like free money.

 

[EVNow]

Sell deep OTM calls and puts - it's worked every ER for me for a few years now. Like free money.

How deep ? With the cash I have and with my long term shares - I can only make a few hundred bucks. Not worth the risk.

 

[pz1975]

How deep ? With the cash I have and with my long term shares - I can only make a few hundred bucks. Not worth the risk.

Yeah I know it isn't a lot of $ but I usually make $1,000 or so. This time I sold 225 puts and 280 calls. May add some further out ones for a little more pocket change. If they end up ITM, I would just roll them out and up to get any losses back. Only risk is a big sustained drop or climb for weeks.

 

[defc0n]

I'll eat crow. Congrats guys.

 

[pz1975]

Yeah I know it isn't a lot of $ but I usually make $1,000 or so. This time I sold 225 puts and 280 calls. May add some further out ones for a little more pocket change. If they end up ITM, I would just roll them out and up to get any losses back. Only risk is a big sustained drop or climb for weeks.

I will eat some crow here! Looks like I will lose some shares (sold $280 calls). I don't mind as it's a very small % of my total holdings and it will get me off margin.

 

[bdy0627]

Incredible ER! Unfortunately, I've been burned too many times lately so I am on the sidelines for this one. Congrats to Tesla and all those invested!

 

[defc0n]

Yeah I don’t understand the large profit given revenue was what we expected? Will see what all the bean counters comb through in the report. Pretty interesting!

 

[Antares Nebula]

I bought a couple of 220 puts and six 265 calls today. Also have some 340 lotto calls from last week. Honestly was not expecting much. Considered buying the 275/280 calls but really didn't see it going above there. Not a big fan of these huge gap ups, cause I fear it will come back and fill. Debating when to sell my calls.

Chiipotle and NFLX faded big time after a move up on earnings, but TSLA "seems" different. I don't know. Really crazy!

Edit: I think what I'll do is sell my calls and then buy another set of calls with slightly higher strike than the share price at time of call sale. That way I lock in my gains, and can ride the upside with relatively less risk.

 

[EVNow]

I was so unsure what would happen, I didn't buy anything this time. No wonder the SP shot up.

 

[Antares Nebula]

I was so unsure what would happen, I didn't buy anything this time. No wonder the SP shot up.

I almost did this too. Didn't really expect to make money on any of my options. Incredible move. Very hard to trade the market! Buy and hold is best!

 

[jeewee3000]

Congrats to all call holders (including me ). Trading related question: would it be best to:
A - take profits immediately or shortly after open?
B - let it ride for a few hours/days?
C - gradually exit positions, selling let's say 1/3 of the calls everyday for the next three days?

I'm torn a bit since I rarely get this lucky on a trade. My usual approach is C, though in this case the short term traders selling the news seems ever so likely so that I fear a dip.

 

[Sudre]

Congrats to all call holders (including me ). Trading related question: would it be best to:
A - take profits immediately or shortly after open?
B - let it ride for a few hours/days?
C - gradually exit positions, selling let's say 1/3 of the calls everyday for the next three days?

I'm torn a bit since I rarely get this lucky on a trade. My usual approach is C, though in this case the short term traders selling the news seems ever so likely so that I fear a dip.

I pull out my investment and hold the left overs. Once the price hits a point that I can sell at most half my calls and get my investment back, I do that. Then whatever is left is profit and I don’t have to worry about it. I am holding. I am hold 2021 calls at the moment. Have not had time this year to actively trade.

 

[Antares Nebula]

Congrats to all call holders (including me ). Trading related question: would it be best to:
A - take profits immediately or shortly after open?
B - let it ride for a few hours/days?
C - gradually exit positions, selling let's say 1/3 of the calls everyday for the next three days?

I'm torn a bit since I rarely get this lucky on a trade. My usual approach is C, though in this case the short term traders selling the news seems ever so likely so that I fear a dip.

I have weekly calls, so I have no choice but to take profit (and see my post above). Personally, if it was me, I would sell all calls and Leaps after this huge spike. Maybe convert a part of that to shares. Calls and leaps have a way of losing value real quick.

 

[Sudre]

As far as options go.... I thought when a stock price starts shooting up the volatility would go up at least slightly, not down.

 

[Antares Nebula]

As far as options go.... I thought when a stock price starts shooting up the volatility would go up at least slightly, not down.

Normally yes, but volatility was already highly elevated due to earnings week. So it's a wash, and will slowly start coming down. Especially near term calls (like this week!).

 

[Antares Nebula]

Sold my 265 calls for 36 and bought 310 calls for 1. Not expecting anything. But what have I got to lose after those gains?

 

[Johann Koeber]

I am selling 280 Calls for $4
and 240 Puts for $3.50
for next week (Oct25)

hoping both expire worthless
otherwise plan to roll them

Selling more puts than calls (50% more)

Well - the puts turned out very well. Closed those for $0.03 each.

The calls I plan to roll to Nov15 285 Strike for a small credit.

 

[jeewee3000]

FYI: because of the spike to ~$300 there are now new LEAPS available. Before the ER the highest strike price for JAN 2022 was $400, now it's $450. (I believe someone on TMC asked about this recently, can't remember who).

They interest me, but not yet. Given that they're "new" I'd wanna let the price (and IV) settle before getting some.

EDIT: corrected typo (JAN 2022 instead of JAN 2020)