When you sell the 2X CC for stock repair, are half of those naked?at the rate this is going, it does look like my SMCI cost basis 901.66 will quickly reduce to 850 and i am finally out, which means DITM CC + Stock Repair is a super deadly combination where income is virtually guaranteed and there is no possibility of capital loss (unless SMCI goes bankrupt)
what did i learn?
FOUR YEARS i wasted on spreads when i could have been doing this
- when stock fell from 900 to 700, there was still about $250/wk OTM income while waiting for sp to rise; this worst-case scenario in itself is already very good (ie getting paid to wait it out)
- when stock traded sideways, there was Stock Repair income while waiting for sp to rise; ~$1000/wk per contract
- when stock rose to 850, i keep $812 for my trouble, and the Wheel round 2 starts again
- in other words, there is income down or sideways or up, and covered call means there is no chance of blowing up acct
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
thenewguy1979
"The" Dog
I STC my -180C and diverted to ride the SPY ATH.....
Till TSLA breakout up or down not taking any risk. Waiting for the man above to tell us the green light
Till TSLA breakout up or down not taking any risk. Waiting for the man above to tell us the green light
NO
+c x1 and -c x2, plus the stock means everything is covered
Stock Repair Strategy
You did your homework, picked a great stock, totally undervalued and ready for a nice price rise. However, after you bought the stock, the damn thing goes and drops 20%. So what do you do now?
optionstradingiq.com
Stock Repair Strategy Guide [Setup, Entry, Adjustment, Exit]
Stock repair is an options strategy used to help recover losses from a long stock position. Learn more with Option Alpha's free strategy guide.
optionalpha.com
Till TSLA breakout up or down not taking any risk. Waiting for the man above to tell us the green light
Well @BornToFly , it's all up to you. You're the giver of the green light.
I'm scratching my head. QQQ keeps going up and TSLA flat for an hour. Other EV stocks are getting hammered. Only GM is up (because Mary lead....).Well @BornToFly , it's all up to you. You're the giver of the green light.
Big dogs moving things hard.. MSFT, NVDA.. working on June July calls to sell. June NVDA 985 at ~ $50 looks pretty tasty.
NVDA appears ready to explode up (assuming earnings good)
At what point do you start the repair strategy?NO
+c x1 and -c x2, plus the stock means everything is covered
Stock Repair Strategy
You did your homework, picked a great stock, totally undervalued and ready for a nice price rise. However, after you bought the stock, the damn thing goes and drops 20%. So what do you do now?
Stock Repair Strategy Guide [Setup, Entry, Adjustment, Exit]
Stock repair is an options strategy used to help recover losses from a long stock position. Learn more with Option Alpha's free strategy guide.
If you buy SMCI today, and sell CCs one month from now for 700 strike. If the SP goes down below 700, do you wait until the CCs expire in a month?
I used to focus more on trading TSLA options which led to many hair pulling days. Now I spend more time on NVDA and & my hair is slowly growing back.
i found that the best is to start early (don't let the stock go too far OTM)
"far" is relative: SMCI 700 to 600 is ok to repair, but TSLA 275 to 175 probably can't be repaired unless you have large reserve capital (ie 20x +c and 40x -c)
I have a couple of June $975 calls. Will probably ride them into next week and sell before earnings.
It looks like the short sellers responsible for the massive red candles at the open are slowly buying back. TSLA probably closes above 177. Just a guess.
the original CC should be closed because the strike of -c x2 is by formula
stock 800
cost basis 900
therefore +c x1 800, -c x2 850 (halfway)
just make sure this is net 0 credit, not debit
thenewguy1979
"The" Dog
Talking about Max Plaid? He's been quiet all morning.
Tesla ever so slowly recovering.
thenewguy1979
"The" Dog
Oh wise one....It seem a big move is getting ready to break out soon. If this is refueling how high can we anticipate - 190? 200?
If dump - still low 160?
ChiefRollo
Member
...leading to over 24M in the first hour block...3.5MM shares in the first minute. Is that normal?
I closed all my calls for the week and averaged out a slight profit. I trust call walls until we get a huge dump like we just did. I'm guessing we weren't the only ones repositioning.
Now either I was wrong and it continues to go down which means I left some cash on the table but that's fine or we fly back up and I feel smrt, ready to sell again.
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