corduroy
Active Member
Super interesting analysis! I guess one must base their decisions on the presumption that either the last year is now the new normal, or an outlier and we will return to a lower, more stable IV range.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Super interesting analysis! I guess one must base their decisions on the presumption that either the last year is now the new normal, or an outlier and we will return to a lower, more stable IV range.
Back on 'sell to open' covered puts. Here's an example for this week and next week. And with **JUST** a fraction of a portfolio. What I like about selling puts is that I'm actually hoping to acquire shares this way **AND** getting paid to do it. Now that TSLA is in the S&P the high premiums (high IV) may dry up, but they are still good now.
Strategy is 'sell to open' puts on dips and dips usually occur at 1030am eastern. Also, Tuesday's (in general) as Monday's are usually up as Fridays (which just happened) are usually controlled to meet Max Pain.
Obviously there is so much more to it than that, but this might help others get started.
Strategy is 'sell to open' puts on dips and dips usually occur at 1030am eastern. Also, Tuesday's (in general) as Monday's are usually up as Fridays (which just happened) are usually controlled to meet Max Pain.
Obviously there is so much more to it than that, but this might help others get started.
corduroy
Active Member
Congrats, that is one impressive portfolio if you have $573k free to cover 7 puts at a time! I can only do 1 or maybe 2 depending on strikes.
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that return its sadness on that amount cash. GME is the way lol
Easy enough if you have margin available on your position. I can cover 5 Puts easily with available margin liquidity but choose to have up to 10 active at a time but at different expiries. There's very little chance of execution anyway unless I choose to as I can always roll out.
Runarbt
Active Member
You don't want to sell puts on a pop, that's when you sell a call- you sell puts on a dip. Or what am I missing?
LN1_Casey
Draco dormiens nunquam titillandus
Ugh, I keep making that error. You're right; it is a call that I sold, not a put. I just had been selling puts for much longer, use to saying puts and not calls!
Runarbt
Active Member
You and me both. :-D I seem to write puts/call almost random in most of my posts. :-D
I haven't found any really juice calls I would want to sell yet.. I am too bullish/greedy to want to do this.
Sticking with naked puts. Will try to sell some more on the next MMD - using 40% of my margin now.. but SP seems stable, so I am considering adding another 10-20% temporary margin usage. (That's greed speaking).
My goal is to get close to 10% monthly return on my margin - have been at 5-6% past two months, but I can do better.;-)
Edit:
Have had 10-15 $760 3/5 naked puts open for past weeks.
Sold 10 contracts after ER for $33, then premium jumped to $58 on Friday after ER.
Sold 5 more, margin usage went uncomfortable high 60%+, so closed these on pop Monday.
Last week premium declined steadily, and margin used went down to 25% so it allowed me to sell 5 more mid week at a dip $25. I have 15 open contracts now, with remaining premium at $17 - my margin usage is 40%.
Will try to stay at 40%, and looking to roll them up a bit closer to SP on a MMD dip next week/or sell more as we get closer to expiry. Plan for now, is to close all 2-3 days before expiry.
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LN1_Casey
Draco dormiens nunquam titillandus
I have nothing to say about it. A lot of money goes into calls and puts of Tesla, and they don't always pan out. Tesla Option Traders Are Dumping Massive Amounts Of Calls like this 44mil bearish bet.
Tesla has no real reason to drop any time soon. Their sales figures were great, they made the 1/2 mil guidance made three years ago, their factories are being completed all over the world, and they just released a refreshed, more expensive model S and X.
Runarbt
Active Member
More likely inexpensive delta heading of long positions by some large hedge funds. Recall that a number of funds have likely revisited their risk hedging strategies after the chaos of GME.
It is pretty amazing...here's this coming Friday's put expiry. 316k $20 puts! No idea how much they cost...maybe $0.02 each?
Edit: Updated ask
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That’s likely someone avoiding a margin call. A relatively massive one at that. Remember that buying deep OTM puts is a way to reduce your exposure for maintenance excess purposes.
Well, I had a limit sell order open on Friday afternoon for a 2/12 $830 put and it looked like there was no way it was going to fill. And then late in the afternoon, it suddenly did, without the stock price changing meaningfully. It wasn't a genius move or anything, I feel like mostly I just got lucky. I had the order set for what I figured the price should be if the stock price dipped to $845, and it filled with the price right near $850, so not a huge difference, but I was pleased.
What's gonna happen is I'm going to wake up one day and see 2000 shares of TSLA fill at $420 for some long lost limit order.
It would be excitement the first second and investing in $ROPE the next.
IV starting to drop on the call I sold it has gone down to 75%.
Does anyone know how to graph the different IV's or graph the IV of a certain call on E-trade or Power E-trade? Power E-trade has something called IV Constellation but I am not sure what I am looking at. There is not much info out about it.
I been selling naked and put spreads since my shares are tight up on the LEAPs that I sold. I been selling the naked puts way OTM about 30-25% out. So far I sold 10x 610P one week and 10x 600P the other and collected $2k and 3k accordingly for the weekly puts. I didn't sell any for this week but with the recent put premium increase late on Friday it might be worth it on Monday.
In TWS Mosaic, go to the New Window menu then down the bottom under Option Tools is Option Analysis. Hover on Option Analysis and you will be able to pick Volativity Over Time. Hover on this an you can select Implied Volativity By Expiry. This opens up a new graph where you can select various option expiry dates and time periods to see how the IV has varied for each expiry in the past.
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