And the farther ITM they go, the closer the debit gets to the capital gain — watch out for that if that’s a concern for you.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
And the farther ITM they go, the closer the debit gets to the capital gain — watch out for that if that’s a concern for you.
I’ll try to make my children inherit 50M so they can sell safe 20% OTM BPS an still make a nice secure weekly 10k to party all day everyday without working.
Lol, just kidding, I will only pay for they scholarship, I want them to learn the hard way like I did and have the fun to appreciate life even with a collapsing portfolio.
I've be doing some messing around this morning with some numbers to try and see if its worth while for me to just let some margin secured Jun 2024 366.67P's just run their course or try to pull them back in. When premiums were higher in the spring, I was able to sell puts 15-20% OTM for reasonable amounts of premium. At 10% OTM, currently, I am just not seeing that the risk reward is worth it. Has anyone else encountered the same thing?
For instance, I could sell ~3x DEC 310P and buy out one Jun 2024 366.7. This would free up some margin, but I am not sure that it would be worthwhile because I would just probably not even use the margin going forward.
My point is that I could leverage my CSP and use that to dig myself out of the Jun 2024's, but I am making way more in premium with the CSP than I would be willing to wager w/ the margin. So my thought is to just sit on the Jun 2024's until they decay a bit more.
The global macro situation is the only thing that gives me any sort of pause about this approach. Anyone else have some advice not advice?
For instance, I could sell ~3x DEC 310P and buy out one Jun 2024 366.7. This would free up some margin, but I am not sure that it would be worthwhile because I would just probably not even use the margin going forward.
My point is that I could leverage my CSP and use that to dig myself out of the Jun 2024's, but I am making way more in premium with the CSP than I would be willing to wager w/ the margin. So my thought is to just sit on the Jun 2024's until they decay a bit more.
The global macro situation is the only thing that gives me any sort of pause about this approach. Anyone else have some advice not advice?
I would assume that both (Dec 310P and 2024 366P) would be safe at expiration. If you made good premium on the 2024s, and you don't want the stress, just sit on them. Personally, I would bring them forward if I had the margin for 3X Dec 310s, because I'm addicted to trading and need something to do for the next two years.... I also think IV will increase and 20% OTM will become more profitable again. Obviously "not advice."
I also have some distant puts, that I've been pulling down one contract at a time.
Goes like this:
- stock down some%, sell a put one strike lower, same expiry, 1 contract only
- immediately set a GTC order to buy to close one of the puts at exact same price
- wait for stock to recover. often has happened during the same day.
Needs some margin, but not that much if done 1 contract at a time. Actually I've been able to pull those puts otm by now, soon I'll start bringing them forward using the same technique.
Openning dip was bought aggressively. I am starting to think that smart money is using every opportunity to buy in front of Q3 results. We haven't seen this in a while. Hopefully in 2 weeks we don't have a sell the news event. Still don't feel comfortable with BCS, just CC on buy/writes.
I really like this approach -- I do have margin free to be able to do this. I will do this the next time we have a dip. My big worry with the whole thing was just messing with my side hustle w/ the CSP. Thanks.
I was a little aggressive on the selling as I expect big volatility this week and I've been trying to get rid of some shares.
TheTalkingMule
Distributed Energy Enthusiast
This was going to come eventually. Unlike past periods of "TSLA must go up" sentiment, this one is based on money. There's simply too much profit coming down the pike, and still waaaay too much growth.
It's exceedingly unlikely this isn't part of an extended rally to ATH. The historical PE will look too weird if we retrace back to something like $260 in Oct or Nov.
Let alone January.....where a 50-70 PE($260SP) would look psychotic in a macro scenario other than nuclear war or Great Recession Part II.
Wednesday is the pivot. If the market absolute despises what the Fed has to say, we could tread water a bit until macro recovers. .75 and some dovish hints should be
.
corduroy
Active Member
-275/265Ps in at .75 out at .22 for 71% profit.
I'm happy playing small ball for the next few days. Although it could be very profitable if one guesses the fed meeting correctly, I consider Wednesday a coin flip. I don't plan to have anything open then.
I'm happy playing small ball for the next few days. Although it could be very profitable if one guesses the fed meeting correctly, I consider Wednesday a coin flip. I don't plan to have anything open then.
Sold 9/23 320 CC, added to -p300
Backing CCs with shares and 9/23 +c310 and 11/18 +c320
Backing CCs with shares and 9/23 +c310 and 11/18 +c320
As of 2:20 PM , options volume where contracts >= 500 show almost just under 2:1 calls, to puts, 310 with the greatest call volume followed by 305. 300 and below mostly put volume.
TheTalkingMule
Distributed Energy Enthusiast
Please. My 9/30 BPS $310/$267 say you're in deep doodoo!
I guess there's an avenue to dual victory here.
Please. My 9/30 BPS $310/$267 say you're in deep doodoo!
I guess there's an avenue to dual victory here.
I'm with @OrthoSurg with my 5x310CCs, I also have 300/260BPSs, so we better stay in the narrow 300-310 range
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