corduroy
Active Member
STO 5x 9/10 BPS -680/+580 @$2.90. Plan to add more tomorrow but wanted to get these open in case tomorrow is an up day. I've still got my 9/2s open, and plan to close the short legs tomorrow under .05.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
While I am enjoying the 730/740 battle, I decided to roll my cc730 to a Sept. 10 cc740 for a small credit as I will likely be heading out of town tomorrow for a good part of the day and don't want to miss any big moves. Good luck to all.
I did STO 5x 9/10 BPS -700/+580 earlier today. I am curious as to why you selected 680 for the short leg?
Just to memorialize my thinking, I chose 700 as it appears that is a large wall there, it is under the mid BB, and the 50 day MA will likely approach 700 next week (current at $684).
It was a stressful day for unrelated reasons. When the price dove down to 732 this afternoon, I took the opportunity to close my cc730. I still think there will likely be a greater dip tomorrow, but I wasn’t willing to take on the extra stress over it. Helps that I was approved for put spreads this week to cancel out my weak cc performance. 
corduroy
Active Member
I'm conservative and usually shoot for 90% probability of profit on most new positions.
Something to ponder for everyone that is looking roll to 9/10 AND you are bullish about next week;
why not close out your existing positions on Friday when MMs are so active and sell calls on Monday when there is an increase in share price? Theta cannot be that big of a factor.
why not close out your existing positions on Friday when MMs are so active and sell calls on Monday when there is an increase in share price? Theta cannot be that big of a factor.
well for one, market isn't open on Monday....
Seriously though, doing that would introduce more market risks than some are comfortable taking. It is basically market timing vs doing a diagonal spread.
AquaY
Member
Am I reading that correctly?
100 x +595/-695 BPS at a $40.79 credit?
$40.79 credit is correct, opened 8/17.
But it's not 100 contracts.
TD adds an unnecessary '100' in the description to indicate there are 100 shares per put.
What I've been doing lately. Got too aggressive with a $710cc rollover from 0827 to 0903 when I should have gone higher. Had to take it on the chin today (cost of BTC was 1/2 of monthly $target!) as price is now fully tracking SP-710, and assume nothing will happen to that tomorrow. Fortunately, I only booked CC against 30% of shares this week.
It was tempting to let it assign and try to rebuy below SP+btc cost, but I'm anticipating a bump on Tuesday which would compound the loss.
Pretty puzzled about target strikes for 0910 or 0917, and have to not try to make up the loss in one swoop.
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AquaY
Member
BPS are all the sudden the hottest thing . What's next IC's?
I sold a few 660/610 BPS for next week. I will not open many trades next week because I am going on vacation and I want to take it easy.
. What's next IC's? I sold a few 660/610 BPS for next week. I will not open many trades next week because I am going on vacation and I want to take it easy.
Along these lines, something I'm doing with my own personal targets is looking for some amount 10 weeks per quarter. I'm giving myself permission to be out of the market 3 weeks a quarter. One reason would be the sort of situation you mentioned - I was mostly thinking about the option to stay out during delivery and/or earnings report.BPS are all the sudden the hottest thing
I sold a few 660/610 BPS for next week. I will not open many trades next week because I am going on vacation and I want to take it easy.
The point is to have some additional flexibility and not feel like I 'need' to be in, at any point in time. At least it's helped me
pz1975
Active Member
I actually like being active selling calls and puts around binary events like ERs and P&Ds. That is how I started selling options in the first place a few years ago. After previously buying a calls and almost always losing around events, I noticed that when the IV spikes just before the event and then crashes after, I could make a lot of easy free money by selling way OTM options. It is extremely rare for TSLA to move 10-15%+ around events so I started selling calls and puts 15-20% OTM - they actually carry decent premium with the IV high. It’s been quite lucrative over the years.
I actually like bein active selling calls and puts when IV isn't <30%
I agree with you 100%, those events are a great time to be active. it will be nice for leap holders and for selling premium around those binary events for IV to get back to "normal" levels
The other BPS is 110 contracts... heheY'know, we thought you'd made $400k with 100x contracts
[Cross post: Posted on main investor's thread]
A data point, might be helpful for folks here.
Got an early assignment of 490C, expiry Sep-17-2021. Broker: IBKR.
Looks like someone badly wants shares. Bullish?
A data point, might be helpful for folks here.
Got an early assignment of 490C, expiry Sep-17-2021. Broker: IBKR.
Looks like someone badly wants shares. Bullish?
Wow, that's some DITM calls! Just an FYI, since I was actually on the other side of that exercise last year. They might've exercised the call option due to tax reasons. Selling the call might've triggered short-term cap gains for them, so instead of riding it out longer, they bit the bullet, now own 100 shares of TSLA, and will probably be selling covered calls in the future.
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