Wiki Selling TSLA Options - Be the House

[AM21]

Hola - well first of all, I have nearly 2.5 years to roll up to a Jun 2026 strike, a lot can happen in that time, so although it would be annoying it's not a big deal either

Secondly, I have 100x January 2025 +c300's sitting there doing nothing, meaning I can write 100x weeklies relatively close to the money and if they go ITM enough that they're difficult to roll, I can just roll them out to September, something like that, then continue with weeklies, albeit with more caution

Already did that on the last run from 180 - 200, I have -c185's go ITM and I threw them out to September -c240's, then when it crashed back down, I rolled them back and closed them out

And if we get a serious rally then I do the same but stop writing weeklies, then sell off my LEAPS for profits at a certain point, then deal with the rolled calls

Thank you! I figure the key is to keep a close watch on the weeklies and try to roll before they go ITM to be safe.

Will read more on PMCC and calendar spread per @ad's suggestion.

 

[dl003]

I STRONGLY recommend getting a Portfolio Margin account to sell naked options on stocks, instead of selling spreads. I have done both and naked options are both safer and easier on the brain, despite the name and the lack of a safety net, which, lets be honest, sometimes just gives you a false sense of security and pushes you to take outsized risks. Otherwise, stick with selling covered and add some spread buying. I dont recommend gambling with spread, but if you feel the urge to sell them so close to the money to capture large return, you might have an underlying need for adrenaline, and instead of denying its existence, you might satisfy that hunger by buying a few spreads here and there. keep it interesting but with much lower risks.

Please take a bit of time to consider this as I dont say stuff like this willy nilly. I have a friend who followed me into TSLA early 2020 and x20 his money in months. He began to display the same signs, consumed by anxiety after a few losses, stopped listening to my advice as hes searching everywhere for ways to make it back. in the end, just a couple months back, he lost the last $ of all the gains from TSLA as well as his original investment and much more. A nervous wreck. This stock can do that to anyone. Take a step back and take care of your mental well being first.

 

[Jim Holder]

I never understood PTSD before, but after our son's suicide in 2019, my brain is not the same. I can't handle the frustrations of hospital work/patient management anymore, or frustrations in general. That is part of the reason I retired - I was getting panic attacks in the operating room before the case would start (even if it was an easy surgery). It is crazy to be aware of it but unable to control it. I was lucky that I had made so much money in TSLA by that point. It is unfortunate that I discovered this thread and lost 66% of it now. NO MORE SPREADS for me.

On the topic of PTSD and how damaging it can be to functionality, emotional fortitude, and in leading one's life in general, I keenly relate to all of this through someone dear in my life who I watched it happen to. They couldn't work, couldn't handle regular frustrations, lost the edge they had in life, lost their cool often. The person finally went to intensive PTSD therapy combined with some help from a psychopharmacologist for temporary supportive meds that aid with the therapy. It really helped bring healing and restored their emotional, psychological, and occupational functionality. I don't mean to meddle or say what you should or shouldn't do, or implying you haven't sought help for the PTSD. I'm just putting it out there as I would for a brother and dear friend.

 

[Jim Holder]

That’s a bit more option gymnastics than I’m used to. I can learn / try it at some point, I think.

@Max Plaid is a pro at spinning many option plates in the air at once. Tough act to follow for sure and not for the faint of heart!

 

[Jim Holder]

SPX close to making a bull/bear choice. One last path to the 5350-5390SPX region on Friday may come via an ending diagonal. But should we break down below the low of wave ii (i.e., 5056SPX), that would invalidate this and increase the probability that the market has indeed topped. For now bulls seem to be holding on.

 

[Jim Holder]

To help confirm the bottom is in for TSLA we need to see a 5-up or break above the Feb high ($205.67)

 

[MikeC]

Off topic, but curious what you'd do in my situation.

Back when market was tanking, I hedged most all of my NVDA position when the stock was around 160. I was fearful of losing stock value, so I sold calls against most of my position to fund a put spread.

The calls I sold were -C300 50x 6/21/24 at 176.54
The put spread expired worthless.

I had actually rolled these sold calls up once from 250 and payed a hefty premium. Now the situation is basically untenable. Sitting on about $2mm gain in stock that I will likely lose out on from being too slow to continue rolling the position as the stock went up.

Worst part is my cost basis on NVDA is $38, so it's going to be a massive capital gains hit if all the shares are sold away.

Advisors are telling me that if i'm still bullish on NVDA, to simply take the loss and re-enter the position. Just wondering if you'd have any suggestions. Shitty situation to be in.

Depending on how much flexibility you have, you could let a few exercise for cash.

Then buy LEAPS and use those contracts to double the number of short calls you have to raise the strike up to maybe ~590. You could also focus on fewer contracts at a time and get the strike higher on those before going back to tackle the rest.

Sell some puts if you can and use that premium to raise the short calls even more.

That could get you close enough where you’re in a position to roll for strike improvement or at least a decent credit.

 

[Jim Holder]

 

[Jim Holder]

Head of Giga Berlin Thierig, "The power supply to the Gigafactory has been restored for a few minutes now. The measures to restart production are now running at full speed under all safety precautions. It will certainly take some time before we have fully resumed production, but the most important step has been taken! Power ON!”

https://twitter.com/x/status/1767295575173505443

 

[Max Plaid]

@Max Plaid is a pro at spinning many option plates in the air at once. Tough act to follow for sure and not for the faint of heart!

View attachment 1026812

Honestly it sounds worse that it is...

What I don't like, as I have now, is having several different stocks in the mix (NVDA and SMCI), I find I lose focus

 

[Max Plaid]

Thank you! I figure the key is to keep a close watch on the weeklies and try to roll before they go ITM to be safe.

Will read more on PMCC and calendar spread per @ad's suggestion.

If you have the capital then follow the @Yoona method, if you're talking about a handful of contracts, keep it safe, and don't think several weeks of winning means you're good at it and take risks, it's the risks that will wipe you out. Take50% profits if you get them, don't wait, another trade will come along after that at some point

 

[Jim Holder]

Honestly it sounds worse that it is...

What I don't like, as I have now, is having several different stocks in the mix (NVDA and SMCI), I find I lose focus

One of your powers is a really solid understanding of the internals that pipe between short and long calls, so you can deploy what’s needed in the moment. That’s very admirable and something I try to learn from reading your posts every day.

 

[Max Plaid]

That’s a bit more option gymnastics than I’m used to. I can learn / try it at some point, I think.

It's basically buying some shitputs when the SP is high and shitcalls when it's low, them having them there to either go up in value and sell for profit, or use as the long side of calendar roll, that's all, works in both directions

 

[Yoona]

3/15 TSLA leaning bullish from greeks POV, but bearish from contracts POV

 

[Jim Holder]

It's basically buying some shitputs when the SP is high and shitcalls when it's low, them having them there to either go up in value and sell for profit, or use as the long side of calendar roll, that's all, works in both directions

What kind of sugar-calls you’d buy now (so I get a sense of strike/DTE), I’d like to try that out on a handful. Just to park aside to either appreciate as a lucky lotto or simply write against.

 

[Yoona]

If you have the capital then follow the @Yoona method, if you're talking about a handful of contracts, keep it safe, and don't think several weeks of winning means you're good at it and take risks, it's the risks that will wipe you out. Take50% profits if you get them, don't wait, another trade will come along after that at some point

i will decide 2dte, still too early

 

[Max Plaid]

Off topic, but curious what you'd do in my situation.

Back when market was tanking, I hedged most all of my NVDA position when the stock was around 160. I was fearful of losing stock value, so I sold calls against most of my position to fund a put spread.

The calls I sold were -C300 50x 6/21/24 at 176.54
The put spread expired worthless.

I had actually rolled these sold calls up once from 250 and payed a hefty premium. Now the situation is basically untenable. Sitting on about $2mm gain in stock that I will likely lose out on from being too slow to continue rolling the position as the stock went up.

Worst part is my cost basis on NVDA is $38, so it's going to be a massive capital gains hit if all the shares are sold away.

Advisors are telling me that if i'm still bullish on NVDA, to simply take the loss and re-enter the position. Just wondering if you'd have any suggestions. Shitty situation to be in.

Well technically you haven't made a loss, but rather capped your gains, I know, I know, I had a similar situation last year with 150x TSLA LEAPS, took me months to sort it out, then TSLA dumped below the short strike anyway and it was all waste of time

So the contracts today are worth around $560, right? The problem is that most of the rolls that get the strike up ATM, involve very long expiry and adding some puts, no guarantee the SP keeps rising, you could just be left with a load of ITM puts and no profits from shares

Example: I note that December 2026 NVDA are available and straddles pay around $500, give or take... but that's a very big risk IMO

Dec 2026 -c850's alone pay nearly $300, which is very decent, you could do it gradually, sell something else worth $30k each week and roll 1x contract out, but even that's no guarantee of anything, if NVDA dumps before then, you don't get the gains

Only way around it, I think, is to buy the contracts out, one by one and sell the shares as you're able to, even then though, making $50k in premium to buy back $50k of premium, to then sell shares for +$80000k profits, that's just generating a load of capital gains

Not it's not obvious, is it...?

Perhaps, as suggested by other poster, if you don't need the money now, then take the best free roll available to Dec 2026? -c400's, something like that? You'd get huge losses on the current contracts that you could offset against gains, right? But you get the cash back in premium and gain +$100 on the strike, so $500k more if NVDA stays up

 

[Max Plaid]

One of your powers is a really solid understanding of the internals that pipe between short and long calls, so you can deploy what’s needed in the moment. That’s very admirable and something I try to learn from reading your posts every day.

It's just looking at contract values over time on OptionStrat and hedging a bit, nothing fancy, just basic maths at the end of the day

 

[Max Plaid]

What kind of sugar-calls you’d buy now (so I get a sense of strike/DTE), I’d like to try that out on a handful. Just to park aside to either appreciate as a lucky lotto or simply write against.

I guess it depends if your broker allows you to write against long calls below their strike, some don't

 

[Jim Holder]

I guess it depends if your broker allows you to write against long calls below their strike, some don't

Mine does (naked anyway)