Wiki Selling TSLA Options - Be the House

[StarFoxisDown!]

what are some things you'll be doing to position yourself in options? and for side income? thank you....

I'm not doing anything fancy and I do longer term based positioning with options. I fortunately sold a bunch of CC's with Jan/June 2025 400 strike prices all the way back in July. I've held off on the urge to close them and that's worked out well. Even if the share price starts to recover in the medium term, I feel those are pretty safe to just let expire in Jan and June of next year. Time decay will start do an number on them as we get into the 2nd half of 2024. I plan to then sell another large batch of CC's with 2027 strikes and use the proceeds buy further out LEAPS with ATM strike prices. Hoping we don't get a huge rally before 2nd half of 2025. I would be able to substantially increase my share count if the stock stays in the low to mid 200's by Q2 of 2025.

In the meantime right now, I'm starting to sell cash secured puts and will go more aggressive into that if the stock gets down into the 150's and buy June 2026 $200 LEAPS with the proceeds.

 

[Jim Holder]

Contrarian move would be to buy

Selling a put is a bullish position

 

[elasalle]

Selling a put is a bullish position

Ahh the bank approach mea culpa

 

[BornToFly]

Rivian doesn't have one. You have to have positive earnings just to have a P/E. That's why their P/E is listed as N/A at the moment (and will be for years cause yeah they aren't turning a profit for years lol)

Exactly. Their free cash flow was almost Negative $6 Billion in a single year, and some of the $9 Billion on hand is actually raise through debt (so they don't really have anywhere close to 9). The product reveal they just did was to justify another capital raise/dilution or to try to get bought by someone like Apple....

 

[Jim Holder]

This should be the final lows developing now in TSLA. Of course, we can still see one more spike down, but this last leg down in the micro looks like an ending diagonal. So, a reversal over $183 will likely be a first signal of a bottom in place. Plus take note of the continued divergence. So, I assume a move over $183, along with the MACD crossover will likely be the first signals a low has been struck.

The new 5 projects north of $300 BTW.

For the real brave, SL should go slightly below the $156 region.

 

[EVNow]

Exactly. Their free cash flow was almost Negative $6 Billion in a single year, and some of the $9 Billion on hand is actually raise through debt (so they don't really have anywhere close to 9). The product reveal they just did was to justify another capital raise/dilution or to try to get bought by someone like Apple....

There is no way Rivian survives without capital infusion of some kind. Actually quite a bit of it in the next 5 years it will take them to start generating any kind of positive cash flow (if they survive until then).

Another way to look at it is - Rivian is actually further behind than companies like NIO and XPeng.

 

[Discoducky]

Looking for a pop tomorrow on PPI, then sell some CCs for next week. I know I'm boring.

 

[ChiefRollo]

Too late for diaper…

 

[ChiefRollo]

This should be the final lows developing now in TSLA. Of course, we can still see one more spike down, but this last leg down in the micro looks like an ending diagonal. So, a reversal over $183 will likely be a first signal of a bottom in place. Plus take note of the continued divergence. So, I assume a move over $183, along with the MACD crossover will likely be the first signals a low has been struck.

The new 5 projects north of $300 BTW.

For the real brave, SL should go slightly below the $156 region.

I’ll take that ($300 hopium), Jim. It’s free and there’s only some lasting effects.

 

[juanmedina]

Any truth to this?

https://twitter.com/x/status/1767997105883209980

 

[Jim Holder]

FWIW I'm currently flat all short positions. Not selling calls nor more puts down here (too late for that for me, see below). Nor am I adding to long calls either as I have too much -P and +delta exposure for further weakness as it is (plus my poor longs 6,000 @CB $328 )

My current bag of snakes:

LONG CALLS

• 10x +C205 4/19 @ 8.50 (-72% -$6,109)
  
  
• 5x +C210 5/17 @8.85 (-26% - $2,527)
  
  
• 10x +C255 9/20 @18.50 (-74% -$13,769)
  
  
• 2x +C180 1/17/2025 @31.00 (-10.8% -$615)
  
  
• 5x +C270 1/2025 @13.38 (-39.8% -$2,678)
  
  
• 5x +C150 12/2025 @109.35 (-46.16% -$25,232)

SHORT PUTS

• 10x -P250 9/20 @57.80 (-41% -$24,655); extrinsic 1.30
  
  
• 15x -P300 6/2026 @115.76 (-16.8% -$29,415); extrinsic 4.78

I invite suggestions if you see anything I can do to improve the lot. For sure to cut the +C205 4/19 (37 days left) ASAP on any DCB if we get one even at a loss. It was a good mule for writing against. I can always get longer dated calls further out at the true next low if I want.

So far my CC scalping brought in 2024, which definitely helps. Hope I won't have to give it back:
January: $73,080
February: $45,185.00
March: $15,069.00


Godspeed to us all!

 

[Singuy]

There is no way Rivian survives without capital infusion of some kind. Actually quite a bit of it in the next 5 years it will take them to start generating any kind of positive cash flow (if they survive until then).

Another way to look at it is - Rivian is actually further behind than companies like NIO and XPeng.

I honestly don't understand how shareholders and the board allows Rivian to make a new product before the last product demonstrating any kind of positive gross margin. Getting it to 0% gross margin would still say a lot about the manufacture process of the truck vs -60%.

I'm actually surprised that Nio and Xpeng are struggling to make a positive gross margin when they have cheaper local supply chain and labor an western countries. Tesla sets the bar pretty high and chasing said bar is forcing companies into bankruptcy if current trend continues.

 

[Singuy]

Any truth to this?

https://twitter.com/x/status/1767997105883209980

That guy and truth doesn't belong in the same sentence. He has been proven to pull dong out of his arse as much if not more than TslaQ.

 

[stealthyc]

SHORT CALLS

• 10x -P250 9/20 @57.80 (-41% -$24,655); extrinsic 1.30
  
  
• 15x -P300 6/2026 @115.76 (-16.8% -$29,415); extrinsic 4.78

short puts you mean

 

[thenewguy1979]

@dl003 are you a Bear yet? If yes, can you please share your next move...

With Love,

TheDog

 

[ChiefRollo]

Any truth to this?

https://twitter.com/x/status/1767997105883209980

I sincerely hope not.

 

[uscbucsfan]

I honestly don't understand how shareholders and the board allows Rivian to make a new product before the last product demonstrating any kind of positive gross margin. Getting it to 0% gross margin would still say a lot about the manufacture process of the truck vs -60%.

Not sure if you are joking or not, but it's not an abnormal strategy.

 

[Jim Holder]

short puts you mean

Fixed. Thanks

 

[Singuy]

Not sure if you are joking or not, but it's not an abnormal strategy.

Can you name a successful car company in the modern era that has a similar strategy?

 

[ChiefRollo]

FWIW I'm currently flat all short positions. Not selling calls nor more puts down here (too late for that for me, see below). Nor am I adding to long calls either as I have too much -P and +delta exposure for further weakness as it is (plus my poor longs @CB $328 )

My current bag of snakes:

LONG CALLS

• 10x +C205 4/19 @ 8.50 (-72% -$6,109)
  
  
• 5x +C210 5/17 @8.85 (-26% - $2,527)
  
  
• 10x +C255 9/20 @18.50 (-74% -$13,769)
  
  
• 2x +C180 1/17/2025 @31.00 (-10.8% -$615)
  
  
• 5x +C270 1/2025 @13.38 (-39.8% -$2,678)
  
  
• 5x +C150 12/2025 @109.35 (-46.16% -$25,232)

SHORT PUTS

• 10x -P250 9/20 @57.80 (-41% -$24,655); extrinsic 1.30
  
  
• 15x -P300 6/2026 @115.76 (-16.8% -$29,415); extrinsic 4.78

I invite suggestions if you see anything I can do to improve the lot. For sure to cut the +C205 4/19 (37 days left) ASAP on any DCB if we get one even at a loss. It was a good mule for writing against. I can always get longer dated calls further out at the true next low if I want.

So far my CC scalping brought in 2024, which definitely helps. Hope I don't have to give to back:
January: $73,080
February: $45,185.00
March: $15,069.00


Godspeed to us all!

Good bag of snakes… you can chill for a while and no one would fault you. Let them work.