Wiki Selling TSLA Options - Be the House

[mickle]

OK after seeing Tesla Robot's I am worried about my covered calls expiring tomorrow at 720 and 740.

Should I put a limit order in tonight to try to buy them back before they explode, or try to roll them later in the day if needed?

 

[InTheShadows]

OK after seeing Tesla Robot's I am worried about my covered calls expiring tomorrow at 720 and 740.

Should I put a limit order in tonight to try to buy them back before they explode, or try to roll them later in the day if needed?

i closed my lcc’s today for 30% of their max gains. I was pretty sure we wouldn’t go down, but not so sure about up.

Still not sure what will really happen tomorrow. I don’t think we go down though.

 

[MrMoo]

OK after seeing Tesla Robot's I am worried about my covered calls expiring tomorrow at 720 and 740.

Should I put a limit order in tonight to try to buy them back before they explode, or try to roll them later in the day if needed?

No you should be fine. Retail doesn't have enough money to move the stock that much in a single day, especially on a Friday when MM's will fight them.

Big funds who liked what they saw take time to get approval to start acquiring shares. There isn't some dude on a computer just doing alright guys Imma start buying 1 million TSLA shares lets go.

 

[mickle]

No you should be fine. Retail doesn't have enough money to move the stock that much in a single day, especially on a Friday when MM's will fight them.

Big funds who liked what they saw take time to get approval to start acquiring shares. There isn't some dude on a computer just doing alright guys Imma start buying 1 million TSLA shares lets go.

What about that dude named Cathie?

 

[MrMoo]

What about that dude named Cathie?

Cathie is pretty strict with the 10% Rule of her portfolio. Also not sure how her fund works with approval for buy / sell since the funds doing it daily. It's probably faster processing down the chain of command but I doubt she'll break the 10% Rule she has going.

 

[Knightshade]

Cathie is pretty strict with the 10% Rule of her portfolio. Also not sure how her fund works with approval for buy / sell since the funds doing it daily. It's probably faster processing down the chain of command but I doubt she'll break the 10% Rule she has going.

Again there's no actual 10% rule.

They own more than 10% of several companies in several funds.

There's informal guidelines they like to stick to, but nothing actually binding.

 

[MrMoo]

Again there's no actual 10% rule.

They own more than 10% of several companies in several funds.

There's informal guidelines they like to stick to, but nothing actually binding.

I am aware it's not a firm rule. It is just a personal rule she seems to have. Which I understand, when it comes to trading you need to have your own rules in place too to avoid emotion.

 

[MP3Mike]

They own more than 10% of several companies in several funds.

Which is irrelevant. The rule isn't that they can't hold more than 10%, it is that they won't buy more if the fund already holds 10% or more.

And yes, we know it isn't a hard rule, but it is a rule that Cathie runs by.

Can you show where they have bought more when they already held 10+%?

 

[Knightshade]

Which is irrelevant. The rule isn't that they can't hold more than 10%, it is that they won't buy more if the fund already holds 10% or more.

And yes, we know it isn't a hard rule, but it is a rule that Cathie runs by.

Can you show where they have bought more when they already held 10+%?

Of course I can.

Maybe you should have checked if what I said was true before giving me a disagree?

Tesla: Examining The Biggest Bull (NASDAQ:TSLA)

ARK CEO makes conflicting statements about 10% rule. ETFs clearly buying above their so-called limit.

seekingalpha.com

there were a number of cases where holdings ended one day at more than 10% and then more shares were bought the next day.

Just take a look at this week, where multiple ETFs bought shares despite a greater than 12% holding the previous day. Simple math tells us that Tesla was never under 10%, so all four days this week Ark violated its supposed rule.

 

[samppa]

I've been thinking about rolling sold positions lately, reading the really good and informative discussion here. It's great!

Going right down to basics, something I've been thinking about..
When rolling a position, you actually do two things:
- you realize the loss of original position
- you open a new position to cover that loss (+maybe some additional credit)

These don't have to be related. This means that you can convert anything to anything really, as long as those conditions apply.

 

[AquaY]

OK after seeing Tesla Robot's I am worried about my covered calls expiring tomorrow at 720 and 740.

Should I put a limit order in tonight to try to buy them back before they explode, or try to roll them later in the day if needed?

I got to the AI presentation late. Some of the questions and answers were very interesting.
The presentation of some of their simulations and what they have accomplished was mind blowing.

I rewound and looked for the robot.
What I saw was a guy dressed up like a robot dancing. then I saw a stationary mannequin.
Did I miss the real robot or did you confuse the dancing guy with the real robot?

Did a search for articles on AI day and found this on MSN but from Fox /Business.( Strange combo there)

""So Dojo is real," said Musk. "The Tesla Bot will be real. But basically, if you think about what we're doing right now with the cars, Tesla is arguably the world's biggest robotics company, because cars are like semi-sentiment, robots on wheels."

 

[InTheShadows]

I've been thinking about rolling sold positions lately, reading the really good and informative discussion here. It's great!

Going right down to basics, something I've been thinking about..
When rolling a position, you actually do two things:
- you realize the loss of original position
- you open a new position to cover that loss (+maybe some additional credit)

These don't have to be related. This means that you can convert anything to anything really, as long as those conditions apply.

you need to keep track of your cost basis though so the series of trades can be accurately tracked.

If you collected $2 on the initial trade, then .15 when you rolled your credit for the series is now 2.15-commissions or about .02. Your actual position when you enter the new trade on paper may be -$4 though for a 200% loss on the position on paper. Meaning you now have $6.15 to make back up. If the stock recovers your trading account may show you gained $1, however you are still -$3.15 on the position to get back to break even.

This is why a trading log is so important. If you don’t have one you will never know what you are actually making on the trades that get rolled.

 

[UltradoomY]

These were ITM at the time, as I was anticipating max pain to save the day. I did this because the margin cost was low for these trades compared to the credit; max loss was around 5k, max gain around 15k on 20 contracts. I closed the spread for this week for a 9k gain on the pop yesterday, and I'm optimistic about the spread for next week being ok. Max pain next week is currently 695, so I'm hoping this blows over. I need to respect monthly options expiration weeks more in the future.

One thing to keep in mind from your statement above - the max loss is technically $5k - plus the initial credit you received. So if you spend that money elsewhere, when max loss happens it will be $20k.
Not trying to be a downer, just letting it be known for margin and cash flow calculations.
Cheers

(please excuse any misspellings - sent from my Tesla AI Robot)

 

[UltradoomY]

you need to keep track of your cost basis though so the series of trades can be accurately tracked.

If you collected $2 on the initial trade, then .15 when you rolled your credit for the series is now 2.15-commissions or about .02. Your actual position when you enter the new trade on paper may be -$4 though for a 200% loss on the position on paper. Meaning you now have $6.15 to make back up. If the stock recovers your trading account may show you gained $1, however you are still -$3.15 on the position to get back to break even.

This is why a trading log is so important. If you don’t have one you will never know what you are actually making on the trades that get rolled.

I'm inherently lazy but recognize the utility of a trading log - so I am using "wingman" which in my short amount of time using has been very helpful in tracking options, especially spreads and rolls.

 

[samppa]

you need to keep track of your cost basis though so the series of trades can be accurately tracked.

If you collected $2 on the initial trade, then .15 when you rolled your credit for the series is now 2.15-commissions or about .02. Your actual position when you enter the new trade on paper may be -$4 though for a 200% loss on the position on paper. Meaning you now have $6.15 to make back up. If the stock recovers your trading account may show you gained $1, however you are still -$3.15 on the position to get back to break even.

This is why a trading log is so important. If you don’t have one you will never know what you are actually making on the trades that get rolled.

Exactly.
I'm trying out wingman tracker for now, and quite like it. Makes life easier than manually filling spreadsheets.

 

[FS_FRA]

Shitcalls it is: STO 8/21 cc730 @ $1.20

BTC cc730 8/21 @ 0.16 at open.

 

[Chenkers]

I sold AUG20$700CC on most of my shares after open for between $1.85 and $1.95. I'm not seeing MM let it get anywhere over $690 without a fight.

My IC's are doing very well with the current price action and I may be able to just let them expire. That would be another record week of premiums for me, roughly doubling the previous weeks record. Although it got a bit stretched during the big dip late yesterday and IB liquidated the long side of some June23 LEAP call spreads to cover margin. Not to worry as I'll be able to buy them back late today.

 

[dl003]

I opened a bunch of 710 naked calls near the top for $0.9 each. Closing them for $0.1 now. This will go a long way to ease the pain of the -725p I'm stuck with after last week.

 

[Yoona]

I got to the AI presentation late. Some of the questions and answers were very interesting.
The presentation of some of their simulations and what they have accomplished was mind blowing.

I rewound and looked for the robot.
What I saw was a guy dressed up like a robot dancing. then I saw a stationary mannequin.
Did I miss the real robot or did you confuse the dancing guy with the real robot?

Did a search for articles on AI day and found this on MSN but from Fox /Business.( Strange combo there)

""So Dojo is real," said Musk. "The Tesla Bot will be real. But basically, if you think about what we're doing right now with the cars, Tesla is arguably the world's biggest robotics company, because cars are like semi-sentiment, robots on wheels."

so far, electrics are up and ICE down

 

[AquaY]

so far, electrics are up and ICE down
View attachment 699010

HUH? Evidently you did not watch the event at the white house where they had all the top Electric vehicle manufacturers there.
Like GM and Ford.