Wiki Selling TSLA Options - Be the House

[Singuy]

Question, do you get the money now or when contract is closed from CC?

 

[juanmedina]

Question, do you get the money now or when contract is closed from CC?

Right away. You would lose your shares essentially at a price of $446 if they become underwater.

 

[Jim Holder]

Struggling to get over last week's highs:

 

[Nocturnal]

Well I guess it's back to ATH this week on news that fewer people got jobs to afford anything. +Ps aren't happy, but I did sell more -Cs today.

 

[SpeedyEddy]

255.50 and then we have equilibrium and then we will see how it will progress

 

[EnzoXYZ]

Question, do you get the money now or when contract is closed from CC?

You didn't see a bump of nearly 1/2 Million in your account?? When you sell the CCs you should see the money right away that you can use for whatever but the 9300 shares are all locked up.

 

[Knightshade]

Question, do you get the money now or when contract is closed from CC?

Selling CCs? You get it immediately (well, technically within 2 days, but effectively immediately).

You then have to pay money to close them (buy to close) when/if you wish to.

Sold 2026 Jan leaps sp 400 @46 each. Excuted 93 contracts. 400 is the price I am okay if shares are called away. But if this thing drops to 200, then I'll close it in Jan.

That's about 43 cents a week... I think the big problem here is there's so much time value on a '26 that rebuying in Jan at 200 wouldn't be THAT huge a return compared to a shorter dated contract?

Jan 24 $300 strikes are paying roughly double the weekly premium and if we unexpectedly start shooting up you can always roll them later/higher, still ending up at '26 400s but collecting a lot more premium along the way and not locking up 9300 shares for years right away.

 

[Singuy]

Selling CCs? You get it immediately (well, technically within 2 days, but effectively immediately).

You then have to pay money to close them (buy to close) when/if you wish to.



That's about 43 cents a week... I think the big problem here is there's so much time value on a '26 that rebuying in Jan at 200 wouldn't be THAT huge a return compared to a shorter dated contract?

Jan 24 $300 strikes are paying nearer $1/wk and if we unexpectedly start shooting up you can always roll them later/higher, still ending up at '26 400s but collecting a lot more premium along the way and not locking up 9300 shares for years right away?

It's a conservative gamble. What if Tesla breaches 300 and all this TA went out the window?

 

[Knightshade]

It's a conservative gamble. What if Tesla breaches 300 and all this TA went out the window?

Then you roll them to the same 400 Jan 26 (or Jan 25 or whatever) and end up with more money than you got doing it the way you did?


It's ALL a gamble of course.

 

[SpeedyEddy]

I don't get the price action against AAPL/SPY/NASDAQ. Based on volume (dropping) it looks like a FOMO-ralley waiting to be killed. Maybe ARKK buying?

 

[Max Plaid]

It's a conservative gamble. What if Tesla breaches 300 and all this TA went out the window?

Well the beauty of selling calls is that you can ALWAYS roll them for at least the same premium or more, depending how ITM they are

The rough guide, if you want to roll, is to do so just before they go ITM, so imagine this time next year, TSLA is approaching $390, then you could rebut those Jan 2026 -c400's and sell a Jan 2027 either at the same strike, for more premium, or a higher strike for the same premium, plus a higher share price if they were to sell

Other possibility is to just let them assist in Jan 2026, then use the proceeds to sell puts - what we call "The Wheel" around these parts, although we tend to do it over much shorter time-frame

 

[Max Plaid]

The "theoretical price" on TDA is 0. Ah well, I bought 250 of them with profits from selling calls for the week. I'm new to put buying, obviously. Thank you!

Now, if you were a real man then you'd sell 250x -p180's against them, but you' require around $1.75million margin/cash to cover the trade

*** NOT AN ADVICE ***

 

[vikings123]

Well the beauty of selling calls is that you can ALWAYS roll them for at least the same premium or more, depending how ITM they are

The rough guide, if you want to roll, is to do so just before they go ITM, so imagine this time next year, TSLA is approaching $390, then you could rebut those Jan 2026 -c400's and sell a Jan 2027 either at the same strike, for more premium, or a higher strike for the same premium, plus a higher share price if they were to sell

Other possibility is to just let them assist in Jan 2026, then use the proceeds to sell puts - what we call "The Wheel" around these parts, although we tend to do it over much shorter time-frame

Just have to remember that you incur losses on the rolled position so be careful to take that into consideration if this is a taxable account.

 

[SpeedyEddy]

who is this? (BUYING IN SO BIG?)

 

[vikings123]

Somebody knows something

 

[Jim Holder]

@dl003 Any insight what's going on?

 

[tivoboy]

10/20 $250 ITM calls getting close to my preset level, if we get to $18.85 I’ll sell across the tax deferred lot 10/20 12 -c250

 

[Singuy]

Just have to remember that you incur losses on the rolled position so be careful to take that into consideration if this is a taxable account.

Can you please explain further?

 

[SpeedyEddy]

based on options, 250 still would be good for Friday, so hanging on to the rest of -C. Must come down later

 

[Singuy]

@dl003 Any insight what's going on?

After 3 years of afraid to sell any calls, I finally did and this major shift of event destroyed space time continuum and we are going straight to 400.