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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Jeeze, macro and other tech rise, and they push TSLA down, then let it fall with the rest, classic technique...
I had the bright idea to trade my 115x -c215's as they were already +50% profits and we were trading either side of 215, of course it fell and kept falling... Plan B is to move to -c210's, which I was thinking to do anyway
Edit: STO 120x -c210 @$8.1, and then it popped up, you're welcome
I had the bright idea to trade my 115x -c215's as they were already +50% profits and we were trading either side of 215, of course it fell and kept falling... Plan B is to move to -c210's, which I was thinking to do anyway
Edit: STO 120x -c210 @$8.1, and then it popped up, you're welcome
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What a roller-coaster. This is indeed traumatizing and I am glad I have zero margin. I probably should sign off until October and see if the stock is in the mid $250's. I bought a December 25 $200 call.
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SpeedyEddy
Active Member
With a Very very big tail, would have been better., but still incoming ! (Short tail though)
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After taking some serious licks the past couple years, I've managed to keep my trades this year small relative to my overall portfolio size and fairly conservative, which has kept my profits smaller, but has also kept me out of trouble. The money was not worth the stress.
As of right now, the only active position I have are 5x 8/25 -p220s. Currently down about 500% on those, lol...but I'm not yet convinced they don't expire worthless. Not interested in selling calls down here just yet on such a long losing streak.
As of right now, the only active position I have are 5x 8/25 -p220s. Currently down about 500% on those, lol...but I'm not yet convinced they don't expire worthless. Not interested in selling calls down here just yet on such a long losing streak.
Bought back 3,000 shares sold at $225 at $212.75 for a nice $36k win overnight. Let’s see if $212 was the low or we have more pain ahead if it continues to build. Will cut again if we lose $213.
Dealer deltas turning green (bearish) for the second day for TSLA, which usually means more downside coming. See correlation below:
Dealer deltas turning green (bearish) for the second day for TSLA, which usually means more downside coming. See correlation below:
I'm seeing decent volume and treasury yields down, the opposite of yesterday. I took profits on my short-term calls and picked up another 12/25 250c. Watching for a good opportunity to open new CCs now, may wait until Monday.
Edit: Sold 10x 225c for next week.
Edit: Sold 10x 225c for next week.
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Well played! Time to change your screen name to Jim Shorts.
Edit: Rolled -c230s to -c217.50s for $0.55. Probably a mistake.
Closed out next week 250cc for .20. Original intent was to hold through next Friday but with >90% gains, the possibility of opening a new position for next week using the same shares is just too good. As well as the opportunity for such a great trading turning nightmarish if Tesla does the abrupt reversal thing that it does so well.
Meanwhile each day down has me cheering for some reasons, and not so happy for others. The 200cc for next week, rolled a couple of times while the share price was going up over the last month, are really liking the price action.
Meanwhile the 230 strike puts for next week, and the 250 strike puts for the week after, have nearly no time value remaining and its about time to roll.
My view on things is that even if we drop to 200, or a bit below, we're not going a long ways below for an extended period. I even kind of want to see a drop below $200 as that's probably where I start converting from a high cash balance, back into shares.
EDIT to add: I am effectively watching time value in these positions and using that to decide when to roll. In the 250 puts this is a particularly poor technique, but in the 230/200 inverted strangle I have on, with the share price splatted right in the middle, it is proving particularly easy to hang on for next week and see where we go. I could do with a month here in the low 200s
Meanwhile each day down has me cheering for some reasons, and not so happy for others. The 200cc for next week, rolled a couple of times while the share price was going up over the last month, are really liking the price action.
Meanwhile the 230 strike puts for next week, and the 250 strike puts for the week after, have nearly no time value remaining and its about time to roll.
My view on things is that even if we drop to 200, or a bit below, we're not going a long ways below for an extended period. I even kind of want to see a drop below $200 as that's probably where I start converting from a high cash balance, back into shares.
EDIT to add: I am effectively watching time value in these positions and using that to decide when to roll. In the 250 puts this is a particularly poor technique, but in the 230/200 inverted strangle I have on, with the share price splatted right in the middle, it is proving particularly easy to hang on for next week and see where we go. I could do with a month here in the low 200s
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Regarding the edit - did that roll shorten the DTE or something else like that? Or did you just make the calls $12.50 more risky for a .55 credit? Share price bouncing back to 217.50 sure doesn't sound like much of a stretch, where 230 seems a lot safer.
EVNow
Well-Known Member
Yes - not sure thats a great idea, though.
I just closed the calls I started end of May - and rolled every week. At times they were DITM calls with 7 figure losses. These weren't covered calls either - call spreads, so the losses would have been real.
I still have some ATM covered calls, which will go ITM if there is a sharp reversal.
I've to rethink my option selling strategy. Frequently I get into bad positions that take months to recover from. This time I was very close to selling leaps to recover. We can't really "be the house" since we don't have the means to be fully delta hedged (or for that matter software/trading abilities).
BTW, I'm back from long vacation and with schools restarting I can spend more time on the forum.
Yes, just collected another $0.55 cr for a much riskier CC, same 8/18 expiration. Probably dumb, but it worked out this time. I’ve done similar trades successfully in the past, just squeezing out a few more pennies, on Friday during a SP bump. Definitely not something I recommend, unless one is willing to lose the shares, because we have seen the SP take off in the late afternoon. Today I tickled the tiger and got away with my hands and body still intact. I won’t try that next week, too much risk after we break $200.
I feel your pain as do many others... it's all about risk and managing that risk... if you go all-in on ATM CC's and the SP pops up 10 every week for two months then of course you're going to get burned, but if you did it with half of your contracts then there's a fair chance you could wiggle out of it...
But you know this, of course
Just wanted to clarify.
I used to do trades like that, and they mostly worked out - let me nick a few extra dimes and quarters most of the time. Then the small minority of the time where they went bad, they went really really bad. So I don't do those any more.
In particular I don't roll (simultaneous close / open) for a closer strike on the same expiration, at least not anymore.
I will:
- close a position, and open a replacement at a closer strike, at a different point in time if the share price moves my direction and there is enough time to expiration. Usually its the next day, but it is on occasion the same day. Just not the same time / transaction (gotta get a share price move in my favor in between the 2 events)
- roll to a new position at a later date (usually 1 week). Mentally I'm closing my winning position and initiating a new position for the following week, and just using a roll ticket for convenience. In practice I've evolved to where I do a market close order on the winning position, and then a market open order on the new position (I do market orders these days, as long as the bid/ask is pretty narrow; its usually <.10).
What's with this green colour I'm seeing AH...???
I had hunch for a close over 215, we did it! Also sold the long put, setup another for next week along with ATM CC. Although, when I checked this morning total gamma for next week, seemed to point at 220s, we'll see.
Gonna look now and post the chart...
EDIT: eh, not really. Looks like we'll be in the 210's, maybe 200's territory, which will be an opportunity to capture a couple coins on what I opened and adjust if things go, uhm, opposite.
Gonna look now and post the chart...
EDIT: eh, not really. Looks like we'll be in the 210's, maybe 200's territory, which will be an opportunity to capture a couple coins on what I opened and adjust if things go, uhm, opposite.
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