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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Can someone please explain to me how to read/treat the delta column. Mine shows +1872.19 and changes throughout the day based on SP.
Is that too high for TSLA or given we may have carved out a low today it may be reasonable?
Anything else to look out for on this table?
Thanks.
Is that too high for TSLA or given we may have carved out a low today it may be reasonable?
Anything else to look out for on this table?
Thanks.
if sp goes up $1, you have unrealized gain $1872
if sp goes down $1, you have unrealized loss $1872
add a gamma column
delta+gamma is your total unrealized gain/loss (ignoring theta and vega) for every $1 move
Thank you!
So if the floor falls out on TSLA (sub-$194 for example), good management would be to cut anything's that's +delta (i.e., close long calls/short puts/commons) and add -delta (i.e., short calls, long puts) to reduce downside delta exposure?
Asked differently, is the goal to keep the delta in balance, i.e., skewed more + when at lows and more - when at highs?
Last edited:
correct
total 1860
if you have fear of falling, you can delta-hedge
short 1860 shares, net delta=0
that means falling sp doesn't affect your gains (ignoring gamma for now, it is too small compared to delta)
buy back the shares if sp reverses (increases) again, for additional profit
Again, ask yourself if you should be trading this stock. Don't want to be an asshole. Just want to remind how easily manipulated we can be sometimes.
Yes. This can go to 230+ very quickly. I'm selling this rip, but not at strike 230.
What's your guess as to cadence: $230/$250 area then $190?
I remember you sharing something about shorting if we see $257.00.
I did exactly what I said I was going to do which was sell more CC’s. Thankfully I accidentally overslept my alarm and didn’t get my orders in until 7 am this morning pt.
My strategy though isn’t nearly as aggressive as some people here. I simply sell leap CC’s at a strike price much higher than todays SP that if it hit, I wouldn’t lose any sleep over.
I still don’t like the setup here especially with where macros are at and so I’m waiting on the second part of my strategy to close out some of CC’s I sold back in July until end of this week
Who woulda thunk it?!Brent is AAA+++
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OK, I'm off out for band practice, but in the meantime I derisked a bit for next week:
Rolled 100x 1/26 -p220 -> 100x -p205 + -c230, net 60c, but more getting out of those -p220's I was looking at
Still have 100x each of -c220 & -c240's in play for next week too, but at this moment in time not too concerned about those...
257 is dead. The 0.381 retracement now lies at 232. TSLA will get there before ER even if it's a dead cat, especially if it's a dead cat. Let's get there first then we'll look at the structure.
Entered BTC limit orders on Friday that didn’t quite clear, but did at today’s open:
- 19Jan$265 — +93% on 1/8 sto
- 15Mar$270 — +65% on 1/8 sto
- 21Jun$270 — +50% on 1/8 sto
BTC today's CC scalps here. So far $5,380 today:
10x -C300 6/21/24
10x -C330 1/17/25
15x -C350 1/17/253
If we keep dumping I'll put them back on.
PS It's true (and nuts) that if I shorted my own longs I'd gain $6,000 for each $1.00 dollar down by buying back lower, but with options it's still safer for me.
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