Wiki Selling TSLA Options - Be the House

[dl003]

I don’t know which is why I ask ;- )

So $226 is still in play l take it.

I didn’t cut longs at break of $238 but I BTC a bunch of short calls for gains.

For those of us still holding some longs, too late to cut?

It's not too late. Another $10 is possible. The risk : reward here is certainly a lot worse than at 242 when I loaded puts and took profit on common.

 

[Jim Holder]

It's not too late. Another $10 is possible. The risk : reward here is certainly a lot worse than at 242 when I loaded puts and took profit on common.

Thank you

 

[thenewguy1979]

The NVDA butterfly just broke it wing. Still got the Dec 15 442P.

@dl003 are you still holding onto the boatload of 220P till we hit 226/225, or offload them already?

 

[Knightshade]

It's not too late. Another $10 is possible. The risk : reward here is certainly a lot worse than at 242 when I loaded puts and took profit on common.

Curious your thoughts on rolling -265C 1/19/24 to -237.50C for 12/8 at a ~50 cent credit?

 

[dl003]

Curious your thoughts on rolling -265C 1/19/24 to -237.50C for 12/8 at a ~50 cent credit?

If I wanted an extra $0.5 credit, I'd just keep the -265C and sell naked a -350C, instead of rolling it down. At 223, I'd have to roll it UP again. So, between commissions and spreads, a round trip will result in almost $0 gain for you.

 

[dl003]

The NVDA butterfly just broke it wing. Still got the Dec 15 442P.

@dl003 are you still holding onto the boatload of 220P till we hit 226/225, or offload them already?

226 or bust.

 

[Knightshade]

If I wanted an extra $0.5 credit, I'd just keep the -265C and sell naked a -350C, instead of rolling it down. At 223, I'd have to roll it UP again. So, between commissions and spreads, a round trip will result in almost $0 gain for you.

It's not the 50 cents so much as taking 5 weeks off expiration so I can open better covered calls sooner, the 50c would just as you suggest be there in case something reversed and I DID need to roll it back up/out- it's just 237.50 is the lowest strike that's still a net credit for the roll... (240 is about 30c debit- and I'm currently at +5.10 credit for having opened the original position 11/13 and rolled to this 265 one later in week)

So you're thinking it gets to 223/226 but then bounces up >$10 before 12/8 to where I'd need to roll out/up again?

This is in an IRA, so can't sell anything naked FWIW.

 

[dl003]

I had a revelation. I am wanting to sell Jan 2025 CCs on all my shares for income for the next year. But there is always the risk that they go ITM and I have to roll them to 2026, which means no income the following year. I found the solution.

Instead of just selling the CCs at (for example) 200X SP 420 for Jan 2025 for $12.70 and making $12.70 per contract, I also do the following:
Buy to open 200X 400 Calls, and sell 200X 420 calls (make a $20 wide Bull Call spread) for about $2.00 debit.

So total trades would be BTO 200X 400, and STO 400X 420. Total credit is now $10.70.

But the beauty is that if the SP is over 420 in Jan 2025, the Bull call spread now earns $18/contract ($20 minus the $2 paid to open). That gives me income for 2025, and now I'm free to roll the 420CCs to Jan 2026 for zero credit, keeping my shares and probably easily raising the strike over 500.

I think $2 is a small price to pay for insurance to make sure I have income the following year if my CCs go ITM.

Thoughts?

Edit: I am holding off on doing this until the SP rebounds and the premiums are better for 2025.

This is an illusion.
Selling & buying options is simply the act of adding & subtracting Greeks. At the end of the day, no matter how intricate your "strategy" is, the bottom line is how much delta and theta have you added? How much more or less exposed are you to IV? That's it. No matter how good you think your 3 leg strategy is, I guarantee you I can just do a 1 leg option that has nearly identical risks : rewards, but one that you will frown upon because it's too simple and too risky. It's very dangerous to think adding a spread or a butterfly, or whatever, will magically put you in a better place. It's dangerous because, thinking you're golden, you will pay less attention to what really makes a great trade: levels, timing, trends, etc...

 

[OrthoSurg]

View attachment 992961

What’s your SP target to close these?

 

[dl003]

It's not the 50 cents so much as taking 5 weeks off expiration so I can open better covered calls sooner, the 50c would just as you suggest be there in case something reversed and I DID need to roll it back up/out- it's just 237.50 is the lowest strike that's still a net credit for the roll... (240 is about 30c debit- and I'm currently at +5.10 credit for having opened the original position 11/13 and rolled to this 265 one later in week)

So you're thinking it gets to 223/226 but then bounces up >$10 before 12/8 to where I'd need to roll out/up again?

This is in an IRA, so can't sell anything naked FWIW.

I missed the 12/8 part, but the point still stands.
Yes right now I don't expect it to drop below 223, not 100% guaranteed though. Just very high prob.
You certainly can try. It won't hurt much, but is very laborious for little gains from where I'm standing, or sitting. A risk that you're not thinking of is: we are -4% today. It's a red day. IV has been crushed. Say at 223 it reverses, you can be certain that theta and delta will not deviate much from your plan, but you don't know what IV is going to look like yet. If it spikes, you'll have a more difficult time rolling it back up and out.

 

[dl003]

What’s your SP target to close these?

What is it? Long 350P?

 

[dl003]

I missed the 12/8 part, but the point still stands.
Yes right now I don't expect it to drop below 223, not 100% guaranteed though. Just very high prob.
You certainly can try. It won't hurt much, but is very laborious for little gains from where I'm standing, or sitting. A risk that you're not thinking of is: we are -4% today. It's a red day. IV has been crushed. Say at 223 it reverses, you can be certain that theta and delta will not deviate much from your plan, but you don't know what IV is going to look like yet. If it spikes, you'll have more difficult time rolling it back up and out.

Also, beware of the free riding rule in your IRA. Rapidly selling and buying the same options with unsettled cash might get you in trouble for 30-90 days.

 

[Knightshade]

Also, beware of the free riding rule in your IRA. Rapidly selling and buying the same options with unsettled cash might get you in trouble for 30-90 days.

I've got whatever the IRA equivalent of margin is, so I can do some unsettled cash stuff

What Is Limited Margin Trading? - Fidelity

Limited margin trading means you can use unsettled cash proceeds in your IRA to trade stocks and options actively without worrying about cash account trading restrictions or potential good faith violations.

www.fidelity.com

That said, everything from last weeks roll is settled anyway, and I've still enough still cash in there that it's really not a factor if I had to roll a second time before this one would settle.

 

[tivoboy]

I’m doing Something crazy…don’t follow me.

BTO 30x +c245 11/24 @.21..short term little lotto ticket

 

[intelligator]

Floating between MP and .382 fib, I opened a $12.5 wide 11/24 -p222.5/-c247.5 IC for .35 while at $233 ... i'll watch the put side closely.

 

[Max Plaid]

BTC 215x 11/24 -c250 @0.15, STO 50x 11/24 -c230 @$4.20 -> to hedge the 50x -p230 (also for 12/1 -p230 in case of roll)

 

[OrthoSurg]

What is it? Long 350P?

Long 220P for 8/12

 

[SpeedyEddy]

I’m doing Something crazy…don’t follow me.

BTO 30x +c245 11/24 @.21..short term little lotto ticket

I got the 242.5 for a dinner next week. (NVDA in fact bought me more, but I took a in cash realised loss on a very stupid move today, so this one is to cover my ass. But first 226, in fact 225.50 to buy some shares already.

 

[EVNow]

I sold P220 for this Friday exactly at the wrong time to (around 234) and opened an order to roll the 255 CC to 260 CC for next week assuming the SP is headed up. Ofcourse, it went down. So, the call roll is now at 68 cents rather than the 80 it started with at that time (and I entered a limit order of 85 cents).

 

[dl003]

Long 220P for 8/12

I'm keeping them until 226. You don't have to follow me. There's no shame in taking profit here.