Wiki Selling TSLA Options - Be the House

[tradenewbie]

My limited experience with closing spreads at nearly 0 hasn't been good. I had some way OTM options go to expiration because nobody would take my .05 offer to be bought out.

NOT-ADVICE, but how I handle these sorts of things.

Ideas:
1) Plan on these going to expiration. Then you'll get equivalent of a 0.00 closing price! The risk is an after hours execution. If you've been reading along then somebody else posted the last couple of days about buying some last moment options on the cheap to be ready to take advantage of a big after hours move (by exercise the options). Because of these sorts of things I'm a fan of a positive close.

I haven't experienced after hours expiration, but I think I've had one position go to expiration in a year and a half of selling options. I don't do that

Thanks for the suggestion, I closed some and sell some BPS for next week.

Just wondering, since mine is -700/+600 BPS this week, they cannot exercise it at all, right? So there should be no harm to hold these till expiry tonight?

 

[Discoducky]

Thanks for the suggestion, I closed some and sell some BPS for next week.

Just wondering, since mine is -700/+600 BPS this week, they cannot exercise it at all, right? So there should be no harm to hold these till expiry tonight?

sorry for the all caps, but THERE IS ALWAYS A CHANCE! Even if tiny!

 

[Tslynk67]

I have been waiting to close my BPS (-700/+600) with <.05 but seems the premium just won't go below .1 even it's so far OTM. When approximately will the premium start dropping tonight assuming the SP stayed about the same?

I assume you sold these for more than you're trying to close them out?

Advice: don't sweat the small stuff - on expiry day, close out above 90%, if you get a move next-day 50% in your favour, close the position, realise the profits, another trade will come along soon enough...

 

[phantasms]

An artificial n00b shares advice.

Do not panic buy back sold calls at a loss very early in the week. lol

 

[ammulder]

An artificial n00b shares advice.

Do not panic buy back sold calls at a loss very early in the week. lol

Eh, there’s missing context. If it’s the week before record-setting and analyst-beating P&D and the stock has been going up up up for the last month and there’s another big gain early in the week… it‘s not to say we can never end up with a Thursday/Friday like today, but it’s certainly not a given. If we were at $820 today then how would you feel about those calls? I think the occasional in-hindsight-unnecessary loss is acceptable to prevent calls being drowned by a climb that turned into a monster.

My advice would be: if it looks like it might be a bad week to sell calls, don’t get distracted by the shiny dollar figures dangled in front of you. Thankfully I made way more on puts than I ate buying back my $770 calls earlier this week. I’m ok with the net result, though I obviously would have done better waiting it out.

 

[phantasms]

Eh, there’s missing context. If it’s the week before record-setting and analyst-beating P&D and the stock has been going up up up for the last month and there’s another big gain early in the week… it‘s not to say we can never end up with a Thursday/Friday like today, but it’s certainly not a given. If we were at $820 today then how would you feel about those calls? I think the occasional in-hindsight-unnecessary loss is acceptable to prevent calls being drowned by a climb that turned into a monster.

My advice would be: if it looks like it might be a bad week to sell calls, don’t get distracted by the shiny dollar figures dangled in front of you. Thankfully I made way more on puts than I ate buying back my $770 calls earlier this week. I’m ok with the net result, though I obviously would have done better waiting it out.

Yes, this makes sense and I figured the responsible thing was to buy it back no matter what happens. Pigs, hogs, right?

Also, since I did have that 770 call executed last week I was dead set on bringing my risk of losing another 100 shares to zero. I'll likely only sell this one put until it gets executed then switch back to calls. [well, maybe I'll sell some 900 shitcalls if things get crazy next week] I'm not looking for more than $500-$1000/week with these 400/500 shares I'm playing with so I can take a more conservative approach.

Even with my messy beginning of the week and JPMChase tying my hands for a few days I still ended up with my best week ever. I <3 puts.

 

[tradenewbie]

I assume you sold these for more, than you're trying to close them out?

Advice: don't sweat the call stuff - on expiry day, close out above 90%, if you get a move next-day 50% in your favour, close the position, realise the profits, another trade will come along soon enough...

Thanks for that. Most of the time, no matter how high the SP close on Friday, it would always come back within the next few days. Last time I had a bad experience by letting go of some of the shares because it's ITM (the week before it took a big jump to 700), however, it took me couple of weeks for the SP to finally come back. Although I could sold aggressive put to turn this into a wheel, but its really painful to keep waiting and out of my control.

 

[jeewee3000]

If you are getting margin calls at 770, YOU NEED A LOT MORE BUFFER....

I've got plenty of buffer out of my broker account. Just sold safe BPS against 98% of my free cash in the account, which takes fixed margin - I thought. Never knew how heavily currency fluctuations impacted those fixed USD margin requirements. All based on idiotic margin calculations which account for like triple the cost/tax of converting all margined cash to the other valuta. So I learned something about my broker. Never got into unsafe territory.

 

[Yoona]

An artificial n00b shares advice.

Do not panic buy back sold calls at a loss very early in the week. lol

true, based on my experience this week:

my final 10/1 positions; CCs are -c805
i will close the calls early
View attachment 713750

DUH! i forgot about the Q3 and that's why i sold -c800/805/810 last friday (banging pretty head on wall)

so my calls this week were down as much as -1,630% but they are all wins now

sometimes, doing nothing is more profitable

 

[tradenewbie]

I have closed all my BPS this week, and sell 1/3 of BPS (-650/+650) for next week. Still thinking if I should sell the rest of it to take advantage of the high IV now? I am thinking even if the IV drop after p&d (not sure yet becoz of the macros) , theres a chance that SP would drop quite a bit and may get us a better premium?

Would you guys close it immediately on Monday (if there's a crush on IV) or let it ride until meeting certain % of profit?

 

[FS_FRA]

Closed my 10/01 705/605 BPS for $0.10

Opened new 10/8 700/600 BPS for $7.13

 

[tradenewbie]

I have been waiting to close my BPS (-700/+600) with <.05 but seems the premium just won't go below .1 even it's so far OTM. When approximately will the premium start dropping tonight assuming the SP stayed about the same?

Seems it only started to have a significant drop after 3am....

 

[bkp_duke]

Took some of the wonderful "not advice" here earlier today and after closing out all my IC positions (94% profit! love all of you for your suggestions), I opened up some BPS for next week since there was that 2nd drop during the day with juicy premiums.

45 x 670/710 BPS with $4.90 premium

Here's to hoping that the P&D report causes a rocket come next Monday and we can all sell the BCS of these with some additional juicy premiums!

 

[EnzoXYZ]

I suspect this thread contributed to the massive amount of labor shortage we are seeing lately!

(Congratulations to all that took this well deserved step)

I have ZERO CCs open going into next week. A first for over ~half a year. P&D way too risky having any open.

My BPS positions going to next week ROTH IRA: 730/700 and taxable accounts: 700/600 or 680/580.

Good luck all!

 

[Yoona]

me also it, seems 780 was resistance; my -c800 are safe for now

View attachment 714886

well, well, well
it seems on Monday morning Newbie Trader Newbie Psychic saw the planned Friday <780 close

 

[Discoducky]

I find it super interesting we hit max-pain without, I repeat, without a call wall. Any lingering shadow of a doubt that MMs have control of the market has been erased.

 

[blckdmp]

I find it super interesting we hit max-pain without, I repeat, without a call wall. Any lingering shadow of a doubt that MMs have control of the market has been erased.

View attachment 716783

Total coincidence!!

 

[AquaY]

well, well, well
it seems on Monday morning Newbie Trader Newbie Psychic saw the planned Friday <780 close

Oh Great and Powerful Yoon when will the spirits whisper to you what next week shall bring?

 

[vwman111]

I find it super interesting we hit max-pain without, I repeat, without a call wall. Any lingering shadow of a doubt that MMs have control of the market has been erased.

View attachment 716783

Do have a score card for the past 3-4 months? It seems like week may have been the only week where Max Pain was completely incorrect.

 

[Chenkers]

I've closed out all my contracts apart from 50 x 720/745BPS that I opened earlier today at $4.40 to take advantage of IV crush. Another healthy week with 4.9% return against total liquidity across both accounts.