TSLA Trading Strategies

[ggr]

In the VW/Porsche short squeeze, I am reminded that Porsche actually cornered the market by buying call options, not the actual stock. If we have a short squeeze, that's what I'm aiming at. I have call options that I bought since Tuesday that represent 90% of my shares of Tesla, and they're all profitable-to-me at $420 or above. I imagine that I'll just have to sell them at a profit, rather than exercising them, since I don't have the capital to buy that much actual stock. In one case, I have 5 DITM options bought some time ago (currently showing 144% profit) and selling 4 of them will cover buying the other 100 shares. Yes, clearly I'm hoping for the squeeze to start tomorrow. .

 

[T3SLA3]

With privatization on the table I would like some opinions on the best way to play things.

My situation is I would like to hold most / all of my 500 TSLA to be converted into the new private / delisted entity.
To get to this point, about 30% of my TSLA is debit in my margin account which I am paying 3% PA for.
This feels comfortable to me, as I have more than that in cash on deposit elsewhere.

Is there any way to profit from the predicted TSLA share price rise (short squeeze) and also take my shares private?
i.e. Cake and eat it to?

 

[neroden]

I'm thinking the FUD will prevent a squeeze.

I would pay off your margin loan if you want to make sure you can take your shares private. Your broker may be lending your shares out without asking and may be allowed to sell off your loaned shares. Get your TSLA into an account which has no margin loan. (You can always take out a loan in a different account.)

 

[T3SLA3]

The debit was just a temporary thing. It will be cleared in a few days once an investment term matures.
It would safest to be a 'freehold' shareholder before any privatization / delisting.

 

[jeewee3000]

Personally I see $280 as strong support so shortly after the opening bell I converted some shares into leveraged products around the $283 mark.

I think excitement from the Joe Roegan show tomorrow might push the SP up a bit, at which point I'll deleverage again. If we drop deeper, I'll just hold longer.

 

[northernbound]

Hi I am new to this forum . I was wondering if anyone here is trading option calendar spreads on TESLA and what their strategy might be

 

[ggr]

Hi I am new to this forum . I was wondering if anyone here is trading option calendar spreads on TESLA and what their strategy might be

Yes, some people do. There's another thread, Advanced TSLA Options Trading that is more relevant to your question.

 

[Brando]

Share of BS, but some real gems from Ron Baron.

 

[elasalle]

Anyone have a logical, scientific, statistical approach to rolling options? i.e %of profit/loss, delta, theta etc?

 

[Xenius]

Anyone have a logical, scientific, statistical approach to rolling options? i.e %of profit/loss, delta, theta etc?

Also want to know.

From my limited (please don't listen to me) knowledge. You buy a call for a price in the future, once you've made money (call value has gone up) you sell and roll that into a new call, further in the future.

Or you buy PUTs and then we put a pox on you.

 

[elasalle]

Also want to know.

From my limited (please don't listen to me) knowledge. You buy a call for a price in the future, once you've made money (call value has gone up) you sell and roll that into a new call, further in the future.

Or you buy PUTs and then we put a pox on you.

Found this Rolling Options | Learn When to Roll Options | tastytrade | a real financial network

Just skimmed through it.

I am in process of rolling my Jan 19 calls(bought)/puts(sold) (for next few weeks) . ~ cheers

 

[ggr]

Anyone have a logical, scientific, statistical approach to rolling options? i.e %of profit/loss, delta, theta etc?

No. (And not speaking only for myself.)

 

[neroden]

Anyone have a logical, scientific, statistical approach to rolling options? i.e %of profit/loss, delta, theta etc?

I roll when there are new positions I want to open which look extremely advantageous, and I don't have enough capital to comfortably carry the new positions and the old positions; I attempt to close the old positions with the lowest future potential.

I don't roll very often, but perhaps my attitude will help?

 

[Menifeer]

I wait until there is little time value ($1 or so in the case of TSLA) left in the one I'm short. I then roll to a later date (few weeks) and strike price that nets me cash income from the transaction.

 

[EVNow]

Found this Rolling Options | Learn When to Roll Options | tastytrade | a real financial network

Just skimmed through it.

I am in process of rolling my Jan 19 calls(bought)/puts(sold) (for next few weeks) . ~ cheers

Since I'm absolutely new to trading options, this would be my first time rolling. I also have mainly J19 calls. My current thinking is to roll to March '19 calls - OTM, with high open interest for liquidity.

A lot of the stuff on internet is really for more stable options (like SPY) - I've found they don't seem to apply well for a volatile stock like TSLA.

BTW, one thing to note about selling profitable options is that you'll have to pay taxes on the profit (irrespective of roll or not). So, keep that in mind. I plan to take out the tax I need to pay before rolling (assuming I make a profit !).

ps : That article looks interesting - because I guess that's what I'm planning to do. Since I think TSLA will eventually go up significantly, just keep rolling till that happens - one quarter at a time. Since I'm not comfortable with options close to expiration, I'd roll one or 2 months before expiry.

 

[shlokavica22]

Anyone have a logical, scientific, statistical approach to rolling options? i.e %of profit/loss, delta, theta etc?

IV is important for choosing the time when to roll.
During high IV period, the price of the nearer term options accelerates faster than the price of the later term options.

 

[defc0n]

Since I'm absolutely new to trading options, this would be my first time rolling. I also have mainly J19 calls. My current thinking is to roll to March '19 calls - OTM, with high open interest for liquidity.

A lot of the stuff on internet is really for more stable options (like SPY) - I've found they don't seem to apply well for a volatile stock like TSLA.

BTW, one thing to note about selling profitable options is that you'll have to pay taxes on the profit (irrespective of roll or not). So, keep that in mind. I plan to take out the tax I need to pay before rolling (assuming I make a profit !).

ps : That article looks interesting - because I guess that's what I'm planning to do. Since I think TSLA will eventually go up significantly, just keep rolling till that happens - one quarter at a time. Since I'm not comfortable with options close to expiration, I'd roll one or 2 months before expiry.

How does rolling options to later expiry compare to doing longer term LEAPS from the start?

 

[EVNow]

How does rolling options to later expiry compare to doing longer term LEAPS from the start?

LEAPS generally seem to 5x leverage. For eg. J20 C500 went up by 155% compared to TSLA by 31% (from $260 to today).

In the same timeframe J19 C400 went up by 380%. So, obviously if the price goes up, shorter term calls are better.

The risk is, if the price doesn't move much, the shorter term calls will start losing price. So, when I roll this time - I'll either buy stock or get J20 calls. Then, switch to shorter term calls closer to earnings.

 

[chiller]

Pardon my ignorance, but when you guys write J20, what do you mean? January? June?

 

[Menifeer]

Pardon my ignorance, but when you guys write J20, what do you mean? January? June?

J20 would imply January. If not January, people would likely write it as Jun20.