Wiki Selling TSLA Options - Be the House

[intelligator]

Not knowing the possible fallout from amzn and aapl earnings, I chickened out and closed what could've expired worthless. Anyone feeling 875 Friday EOD? GLTA!

Below are the shifts from Wednesday to Thursday. Are these useful, helpful? I don't want to clutter the thread with nonsense. It helps me visualize the MM's daily moves. Wednesday to Thursday, some put gamma tightening between 850 (+) and 900 (-) , call gamma tightened as well, overall shift went back to the put side (-0.22 to -0.30) .

Given where we are sitting, looks like I am going to eat two 5/20 1200 calls that I could have sold for a third to a half , a month ago. Oh well. If we do get a strong pull back tomorrow, I may attempt to fill that loss by selling one far out ITM/ATM put; seems like a good low maintenance play with less likeliness to have the same outcome as the bought calls.

 

[BornToFly]

Elon confirmed on Twitter that he sold stock this week, but is done. Hopefully the BPSs are safe now. Careful with the calls....

 

[bkp_duke]

Elon confirmed on Twitter that he sold stock this week, but is done. Hopefully the BPSs are safe now. Careful with the calls....

Too bad if we already closed out the positions for a loss.

I took a 4X premium loss on my 890/900 BPS's.

Keeping a close eye on the 790/910s for tomorrow.

 

[BornToFly]

Too bad if we already closed out the positions for a loss.

I took a 4X premium loss on my 890/900 BPS's.

Keeping a close eye on the 790/910s for tomorrow.

Who knows what happens tomorrow, but I'm really happy I closed that 950/1090 BCS I had flipped rolled now. An hour ago I was kicking myself for giving money away....

And this is the problem with spreads. You think you have TSLA earnings figured out, you think you have Macros figured out, and then BAM!!! Another black swan - this time Elon selling. I very nearly had a significant 6 figure loss from Margin call today.

 

[MP3Mike]

Well it looks like I'm out. E*TRADE upped my margin maintenance requirements. They haven't issued the margin call yet, so I don't know if they will give me a few days to clear it, or if I will have to clear it tomorrow. If I have to resolve it tomorrow I will probably have to close out almost all of my open positions and after all is said and done my taxable account will pretty much be wiped out. (After holding back enough to pay the taxes on all of the liquidations.) The winners will be the MM and the Tax Man.

If we get a big rebound tomorrow, because Elon is done selling, it could leave me a little, but I'm not expecting it.

While I've lost a lot of paper gains I hadn't put in a huge amount of money myself, average share price of ~$60, but there will be no way to replicate that going forward. I had gotten in at the right time, did very well, and then screwed up big time. My once in a lifetime opportunity is now gone.

 

[BornToFly]

Well it looks like I'm out. E*TRADE upped my margin maintenance requirements. They haven't issued the margin call yet, so I don't know if they will give me a few days to clear it, or if I will have to clear it tomorrow. If I have to resolve it tomorrow I will probably have to close out almost all of my open positions and after all is said and done my taxable account will pretty much be wiped out. (After holding back enough to pay the taxes on all of the liquidations.) The winners will be the MM and the Tax Man.

If we get a big rebound tomorrow, because Elon is done selling, it could leave me a little, but I'm not expecting it.

While I've lost a lot of paper gains I hadn't put in a huge amount of money myself, average share price of ~$60, but there will be no way to replicate that going forward. I had gotten in at the right time, did very well, and then screwed up big time. My once in a lifetime opportunity is now gone.

I'm so sorry to hear this!!!

 

[MrMoo]

Well it looks like I'm out. E*TRADE upped my margin maintenance requirements. They haven't issued the margin call yet, so I don't know if they will give me a few days to clear it, or if I will have to clear it tomorrow. If I have to resolve it tomorrow I will probably have to close out almost all of my open positions and after all is said and done my taxable account will pretty much be wiped out. (After holding back enough to pay the taxes on all of the liquidations.) The winners will be the MM and the Tax Man.

If we get a big rebound tomorrow, because Elon is done selling, it could leave me a little, but I'm not expecting it.

While I've lost a lot of paper gains I hadn't put in a huge amount of money myself, average share price of ~$60, but there will be no way to replicate that going forward. I had gotten in at the right time, did very well, and then screwed up big time. My once in a lifetime opportunity is now gone.

Wow. I remember your name / seeing you post quite often around these forums. I didn't know it had gotten so bad for you. I'm sorry to hear about your situation. I really do hope we see a face ripping rally tomorrow.

 

[BornToFly]

What do you have open Mike?

 

[MP3Mike]

I'm so sorry to hear this!!!

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.) I've also got 5/6 975 CCs on the shares that will have to be gotten rid of so I can sell shares, so it hurts on the way up and down...

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

 

[MP3Mike]

Wow. I remember your name / seeing you post quite often around these forums. I didn't know it had gotten so bad for you. I'm sorry to hear about your situation. I really do hope we see a face ripping rally tomorrow.

As do I, but NASDAQ futures don't look like they are cooperating. But who knows, anything could happen.

 

[vikings123]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.)

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

So sorry to hear about your loss. Any chance the margin call goes away if we gap up big tomorrow? Maybe call them and ask for some time?

Not advice but if there is any way to get out without adding more liquidity I think there is a decent chance that we hit 1000 next week. With the uncertainty of Elon sale now lifted my expectation is that growth PMs will start buying up TSLA especially since FAANG is now busted. That said there is too much going with Macro so it will be extremely choppy.

 

[JustMe]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.)

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

Hell yes it’s possible! Look at the daily chart. We flirted with $1,100 one week ago.

When we’re near all time highs it seemed impossible that the stock could tank to $700. Now that we’re down in the dumps it may feel like it will take ages to make our way back.

With Elon confirming he sold millions of shares this week *and* he doesn’t plan on selling more in the near term, we could have a face-ripping rally to >$1,000 over the next few days.

I will be buying 5/8 $1,000 calls at the open tomorrow.

 

[bkp_duke]

As do I, but NASDAQ futures don't look like they are cooperating. But who knows, anything could happen.

Not going to give advice, just going to share my experience with something very similar about 2-3 months ago. Share 2 different scenarios, both of which I pursued, in different accounts.


I sold BPS's immediately after TSLA hit peak around Jan 3rd on the amazing earnings report. And it was an "all in" BPS position, leaving me with little room for error in the accounts.

One account is mine and my wife's, the other is my father's who has entrusted me to invest for him (and until recently had done very well).

In mine and my wife's account - I could not add any additional liquidity to the account, and the share price drop was severe enough that there were no possible rolls I could make to push the position out. We took the loss, and it stung at about 90% of the trading account (high 6 figure loss).

In my dad's account, I called him up, explained the situation, and that a roll without adding liquidity would not be possible. I asked him what he wanted to do, and presented him with the option of adding liquidity and rolling the position out 12 months into the future. He chose this option. His account is still in a large loss, but given the positions expire in Jan 23, and are just above 1000 for the short put, there is a good probability that they will be able to expire and not incur a major loss.

In hindsight, I wish I had found some liquidity to do what I did for his account, in mine and my wife's account.

Not advice, just what I went through recently.

 

[traxila]

So sorry to hear about your loss. Any chance the margin call goes away if we gap up big tomorrow? Maybe call them and ask for some time?

Not advice but if there is any way to get out without adding more liquidity I think there is a decent chance that we hit 1000 next week. With the uncertainty of Elon sale now lifted my expectation is that growth PMs will start buying up TSLA especially since FAANG is now busted. That said there is too much going with Macro so it will be extremely choppy.

Macros may suck or turn around in a hurry, but the clarity on TSLA now and the removal of millions of shares hitting the bid bode well for SP action next few days.

Maybe Mike can turn it around.

Rooting for you!

 

[MrMoo]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.) I've also got 5/6 975 CCs on the shares that will have to be gotten rid of so I can sell shares, so it hurts on the way up and down...

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

The macros are what is scaring me the most. We are very close to a strong support line for the Nasdaq. If we break it, it could hurt. With AMZN Shitting the bed, it does us no favours. On the flip side, if it holds then we are at the bottom and it would suck to lose it all at the bottom.

My not advice is, every time I've felt *sugar* and felt like the risk was too high to put more money in or use margin in my account these were the times I Should of been buying. Instead I got tricked by earnings and ended up selling puts at $1000 strike and buying shares at 1040. So i'm now underwater 6 figures on those new positions. Where as my mate bought a month or more ago at 792 when I was being patient to get a better price / fearful. I wish I had done that lol.

 

[Oil4AsphaultOnly]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.)

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

Ouch. Not gonna lie, but that looks painful. The problem is that you're currently deep in max-loss. The SP might recover to 1050, but you're at risk of getting those puts exercised to you at any time. The only thing I can think of is to sell a 6/17 1050 covered call to help pay for a debit roll down to 6/17 900/1000 BPS. But that's not exactly a "good trade", more of "limp along to survive for another day" move. Being essentially a strangle, hopefully both sides expires worthless in 2 months.

Hoping for an SP recovery tomorrow so that you don't have consider such moves!

 

[MP3Mike]

The only thing I can think of is to sell a 6/17 1050 covered call to help pay for a debit roll down to 6/17 900/1000 BPS. But that's not exactly a "good trade", more of "limp along to survive for another day" move. Being essentially a strangle, hopefully both sides expires worthless in 2 months.

I added to my post that my shares are already tied up with 5/6 975 CCs... (And I have three times the BPSs as I can sell CCs.) Put bluntly I screwed myself. (Significantly because of my handling of the early assignment options today.)

 

[BornToFly]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.) I've also got 5/6 975 CCs on the shares that will have to be gotten rid of so I can sell shares, so it hurts on the way up and down...

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

Need to think about this some more, but since they are a max loss, you just need to reduce the margin requirement. Iron condor has the same requirement as a BPS. You can flip roll some to a Bear Call Spread and make an IC. Other option is roll out and up and see if you can reduce the spread width without changing the number of contracts (maybe for a reasonable debit that lowers your margin overall). Definitely don't throw in the towel. Those have a good chance of ending up OTM. Or, Instead of flip rolling open the same number of BCS to increase cash without changing margin requirement?

 

[EnzoXYZ]

We better be seeing tripple digits tomorrow!

My open positions 880 BPS and couple of 950 CSP. As usual I wait close to expiration day to roll if needed so let’s all hope for a huge up day!

 

[samppa]

I do have enough cash available that I could probably save myself from this margin call, but I'm not sure it is worth it. The majority of the positions that I have left are 5/20 1000/1100 BPSs and I'm not sure that we would be at least to $1050 by then such that I could roll it and save it. Assuming of course, that they aren't assigned early, though there is more interest in these strikes so it should be less likely. (And it would mean giving up some spending/purchases that we had planned and want to continue with.) I've also got 5/6 975 CCs on the shares that will have to be gotten rid of so I can sell shares, so it hurts on the way up and down...

What are people's not-advice; do you think that is there a reasonable possibility that we get to $1050 by 5/20? Looking at the option interest it looks possible, but that will likely be different when we get updated data tomorrow. And who knows what will happen between now and then.

Sorry to hear that.. you could look at possible rolls far into the future, like a year or even 2 out.. I don't knoe how e-trade handles these.

Is the margin from stock? you may be able to bring more liquidity by just selling shares.