Wiki Selling TSLA Options - Be the House

[bkp_duke]

I'm not there yet . . . but anyone know how to roll a BCS or IC in Fidelity? I haven't found a "roll" setting like there are for puts and calls. Do I just have to close the position and open a new one?

Pushing 800 is getting me very nervous about my 695/720 800/825 IC exp 10/1.

 

[KTC Lurker]

I do a rough calculation in my head.
Margin-needs is roughly a probability-based expectation on the max-loss.

i.e. i have 10x 750/670 Bull Put - max-loss 80k. Margin reqs. 62k. But if know if things get hairy i can either roll (for credit & less margin) or turn it i.e. into a 750/700 bull put for "little" money, but gain 24k of my margin back (& limiting max-loss to 50k).

And their algorithm is batshit stupid. Sometimes i need 10x MORE margin if i REDUCE the risk. Last week i could do 10x CC for -16k margin or so. When i changed that to 5x CC i would have NEEDED 200k more margin-buffer. Doing no trade = 0 margin impact & staying compliant.

But well.. there are NO alternatives here...

Insightful, thank you!

 

[adiggs]

I'm not there yet . . . but anyone know how to roll a BCS or IC in Fidelity? I haven't found a "roll" setting like there are for puts and calls. Do I just have to close the position and open a new one?

Pushing 800 is getting me very nervous about my 695/720 800/825 IC exp 10/1.

I've rolled spreads in Fidelity.

There isn't a spread roll ticket. You'd use the Custom ticket instead with 4 legs. The 2 closing legs that you currently have, and the 2 opening legs that you are moving to.


For an IC I would do 2 of these tickets. Though in practice I don't see a need to roll both sides. Rather I would close the winning leg to make the margin available to the other leg when it is being rolled to a later expiration. Then you can open a new version of the winning leg at the new expiration to get back into the IC. The roll is strictly a convenience for a winning position - it is a necessity for a losing position where you don't have adequate cash to buy out the losing position, and then opening the new (sizable) position.

 

[ReddyLeaf]

Ok, where are you guys with guts? Bought 17 shr to round out another lot and then just sold 830c @ $3.20. Unfortunately, also sold 750p @ $6.20, so guaranteed to go down now. You’re welcome. Edit: Also, unfortunately some of those 765/770s required another roll to 10/15 and I fear they will be rolled out again tomorrow, or later. Looks like I will be pushing the envelope on whether continuing rolling wii keep up with the SP increase.

 

[Cherry Wine]

Here are my positions for this week, all expiring 10/1. I plan to let the puts expire worthless; will probably need to roll the $780 bear call spreads (and maybe even the $800s), not sure if I want to roll one week out or go to a higher strike / further expiry if needed. Will buy back the $840s on a decent pullback and look to reload if an opportunity presents itself.

$690/$640 bull put spread - STO @ $2.35 on Friday.
$750p - STO @ $11.91 on Thursday.
$720p - STO @ $6.86 on Thursday.
$780/$830 bear call spread - STO @ $2.01 on Friday (LOL; thankfully only 10 of these)
$800/$850 bear call spread - STO @ $0.70 on Friday (LOL x2; also thankfully only 10 of these)
$840 covered calls - STO today @ $2.75

 

[phantasms]

The $750p I sold this morning for $10 hit a ~37% profit so I bought it back.

Once I did that my account cash got freed up so I could attempt to un "fork" my calls.

Rolled my 800 to 820 for next week with the intention of buying to close at a loss when and if we get some weakness.
Rolled my 830 to an 850 for $1 loss.
Sold a 900 for ~$0.5.

Hopefully I end up in the green this week.

Thanks for all the help JPMChase! /s

 

[FS_FRA]

Dipped my toes in BPS territory this afternoon. Decided on $100 wide spread to play it safe(-ish)

STO 10/1'21 705/605 @ $2.06

 

[BornToFly]

TSLA up less than Nio, and F. Similar to GM and NKLA....
If we get into 850 territory on Friday, I will sell CC on Friday for a Sell the news play.

 

[adiggs]

TSLA up less than Nio, and F. Similar to GM and NKLA....
If we get into 850 territory on Friday, I will sell CC on Friday for a Sell the news play.

Similar for me - I'm mostly out and hoping for a good entry early in the week for later in the week exit.

But mostly looking for sell the news trades on Friday or maybe Thursday. The IV collapse on sell-the-news trades in the past has been just lovely

 

[dc_h]

I don't think I'll sell any, but call pricing appears to have improved. I see 850 calls at 1.50. Condoring some bps with 850-900 call spreads seems conservative enough to avoid getting hit.

I sold 5 call spreads at 850-900. I hope I regret it, would be a great bet to lose, but I think we're going to stay around 800 before another breakout next week.

 

[phantasms]

Sorry but can someone please remind me of the website that eat CSV files to tell me if I'm doing "good" or "bad".

Now that I'm playing with puts my Google Spreadsheet has started to become quite a bit more complicated. It's doable, sure, but I'm open to paying a small sum for other options [har har].

If anyone has referral codes, send em my way!

 

[samppa]

You're a brave soul. In the OptionTrader while putting a multi-leg (BPS) together the lack of maintenance margin impact insight boggles my mind. Do you have a formula for calculating manually that you use?

if you look at multi-leg positions performance profile, it should show you margin impact.
Also order entry should show impact on initial and maintenance margin, before you transfer actual order.
At least they show for me..

 

[KTC Lurker]

if you look at multi-leg positions performance profile, it should show you margin impact.
Also order entry should show impact on initial and maintenance margin, before you transfer actual order.
At least they show for me..

Thanks- yes the profile has cured my issues. I'm starting to get more familiar with TWS. Now if only I could make up mind to put in a BPS today or wait to see if there is any red tomorrow...

 

[juanmedina]

No issues for me, although I only trade on TWS.

I've sold about 2/3 of my allocation for this week and will wait till tomorrow before I add any more. I was a little early on most waiting an hour after open when it should have been 1:10. Current IC's CC and BCS are:

1Oct IC 725/750 820/850 @$4.00
1Oct BCS 830/860 @ $1.25
1Oct 840CC @$1.25

I am surprised how conservative you are being with the CC's. What do you think the SP will be at the end of the week?

 

[mickificki]

Ok, where are you guys with guts? Bought 17 shr to round out another lot and then just sold 830c @ $3.20. Unfortunately, also sold 750p @ $6.20, so guaranteed to go down now. You’re welcome. Edit: Also, unfortunately some of those 765/770s required another roll to 10/15 and I fear they will be rolled out again tomorrow, or later. Looks like I will be pushing the envelope on whether continuing rolling wii keep up with the SP increase.

raises hand, I'm right here!

rolled my 775 CC to 830 but DTE of 10/29 for a credit (i think i'm hosed but gonna keep rolling, lets see how far i can roll!)...

still have 800 CC to deal with. what's that saying, fool me once shame on you, fool me ten times...

 

[samppa]

Thanks- yes the profile has cured my issues. I'm starting to get more familiar with TWS. Now if only I could make up mind to put in a BPS today or wait to see if there is any red tomorrow...

ibkr videos are actually quite good, I've watched almost all of them. The ones in the "learn" tab in tws. Takes a few hours, but it's well worth it.
Personally I really only use classic tws and it's optiontrader, mosaic has more features but is a bit confusing.. and I only need to follow one stock.

 

[samppa]

Sold -p745/+p695 spreads during morning dip. Nice premiums.
Now considering adding call side legs at maybe -850/+900.. should be safe.. but I think I'll stay away from call side for now.

 

[EV forever]

Managed to get out of the sold calls @805 portion of my ccs this morning at ~20K loss. Glad I did, the premium has doubled since then. Could have gotten out earlier with only 7K loss but decided to wait for MMD which never arrived. Still holding the long call @845 portion - hopefully can offset some of the loss. Added 25 BPS for 750/700 for 10/01. Also still holding the 685/725 BPS from Friday. This was IRA account. Unfortunately, never did buy the LEAPS I wanted. Let’s see if we get a bit of dip later.

In the taxable brokerage- closed out the 670/720 BPS for 70% profit and opened 700/750 for $3.20. I don’t think we will drop below 750 now till Friday.

But the real problem here is the TastyTrade copy IC for 10/22 I opened 3 weeks back. 550/650/850/950. The CCS portion is now in big loss, the BPS portion profit is offsetting if for almost even. If I close it out completely, probably break even.
So trying to decide if I should do that or close out the BPS portion and hold the CCS longer. If we go into flat trading for next few days, the CCS May recover to some extent.

Edit: sold most of the c845 long calls for small profit. Brings overall loss to 15k. Holding some of these just to see if we breach 850 this week.
Will not open any more short call positions now till 3Q earnings are done.

 

[samppa]

Sold -p745/+p695 spreads during morning dip. Nice premiums.
Now considering adding call side legs at maybe -850/+900.. should be safe.. but I think I'll stay away from call side for now.

Premiums trending up, so had to leg in.. trying to play it safe with a reaally wide spread.
Bull call spreads -c860/+c1050 sold for $1.15. Will close these tomorrow if we have a dip.. and will roll out and up if 850 is breached.

 

[Puff]

Opened 55x 10/1 IC 660/700/800/840 a couple weeks ago. Closed the call side last week and opened a new spread at -790/+830. Last friday, opened 21x -790/830 to average up the credit earned. Paid for it dearly today. Closed it out and sold 200x -825/835 to recoup my losses.

I thought 800 was going to be safe 3 weeks ago and planned to close out the positions on 10/1 prior to PD.