Wiki Selling TSLA Options - Be the House

[ZenMan]

Bollinger bands are starting to expand. Upper band at $829.08.

Glad I closed my -820s and -825's yesterday. Too bad I left my -830s. If they end up in the money I may have to roll them even though I didn't want to go into earnings with any short calls. Not going to buy back for a loss.

 

[bkp_duke]

IV continues to slide. Great for those of us already in positions . . . not so much if you are looking to open a new position.

Does IV usually drop in advance of earnings? Somehow I don't recall this as the normal pattern.

 

[The Accountant]

any particular 10/22 -c strike you have in mind?

some of us are nervous about our -c850 (that would be me)

TIA!

I'm not certain on how others play the Wheel - perhaps my strategy is different.
I seek high premiums and want shares to get Put to me and I want shares to be Called from me.
So I usually write contracts one month out At The Money. This is a tax free IRA account.
My goal is to get $30-$50 premiums. I know that the stock can drop way below my put and run much higher than my call but I figure collecting $30-$50 each month is a winning strategy in the long run.
This year I am up 55% on a large 7 figure investment.

So I would be looking to sell a Call today for Nov 19 at $825 or $830 for a $40 premium.

I have an taxable account with Tesla shares that I don't write calls too often on (they have a $64 cost basis).

 

[bkp_duke]

I'm not certain on how others play the Wheel - perhaps my strategy is different.
I seek high premiums and want shares to get Put to me and I want shares to be Called from me.
So I usually write contracts one month out At The Money. This is a tax free IRA account.
My goal is to get $30-$50 premiums. I know that the stock can drop way below my put and run much higher than my call but I figure collecting $30-$50 each month is a winning strategy in the long run.
This year I am up 55% on a large 7 figure investment.

So I would be looking to sell a Call today for Nov 19 at $825 or $830 for a $40 premium.

I have an taxable account with Tesla shares that I don't write calls too often on (they have a $64 cost basis).

"Not advice", but check out the returns from Bull Put Spreads. Conversation started about June/July in this thread if memory serves me correctly. Some here have been getting 5-10% returns per week, without what I would consider excessive risk.

 

[bonk3125]

I should be happy with this SP movement, but I feel scared. Anyone else?

 

[UltradoomY]

I'm not certain on how others play the Wheel - perhaps my strategy is different.
I seek high premiums and want shares to get Put to me and I want shares to be Called from me.
So I usually write contracts one month out At The Money. This is a tax free IRA account.
My goal is to get $30-$50 premiums. I know that the stock can drop way below my put and run much higher than my call but I figure collecting $30-$50 each month is a winning strategy in the long run.
This year I am up 55% on a large 7 figure investment.

So I would be looking to sell a Call today for Nov 19 at $825 or $830 for a $40 premium.

I have an taxable account with Tesla shares that I don't write calls too often on (they have a $64 cost basis).

Alright everyone!
We have officially made it to the big time!!!!!
The @The Accountant is Wheeling with us.. Whooo HOoooooooooooo

 

[juanmedina]

When are you guys considering to close your leaps? My Jun 22 $550 are at 70% profit and my Jun 23 $500 at 53%. I am getting tempted about closing them.

I should be happy with this SP movement, but I feel scared. Anyone else?

I am, I think I got a little carried away on BPS for next week lol.

 

[The Accountant]

"Not advice", but check out the returns from Bull Put Spreads. Conversation started about June/July in this thread if memory serves me correctly. Some here have been getting 5-10% returns per week, without what I would consider excessive risk.

Thanks -
I learned about The Wheel strategy here on TMC early last year. So I have only been writing Puts and Calls depending where i am on the Wheel.
I have not done a Spread yet but I'm willing to learn more about them. I will look for the June/July conversation you mentioned.
Thanks again.

 

[bkp_duke]

Thanks -
I learned about The Wheel strategy here on TMC early last year. So I have only been writing Puts and Calls depending where i am on the Wheel.
I have not done a Spread yet but I'm willing to learn more about them. I will look for the June/July conversation you mentioned.
Thanks again.

Conversation starts around then, and then just keeps going till . . . well basically today.

Good luck!

 

[Tslynk67]

Alright everyone!
We have officially made it to the big time!!!!!
The @The Accountant is Wheeling with us.. Whooo HOoooooooooooo

We, to be fair, we do actually discuss the stock here, rather than bitching about FSD scores, unions, which motors the Plaid is using, CT configuration and all sorts of other crap

 

[CHGolferJim]

Bollinger bands are starting to expand. Upper band at $829.08.

Glad I closed my -820s and -825's yesterday. Too bad I left my -830s. If they end up in the money I may have to roll them even though I didn't want to go into earnings with any short calls. Not going to buy back for a loss.

If I have to roll my -820s, I think I'll go out 2 weeks to 870.........traveling next week and don't want to have to track this, plus ER volatility, of course.

 

[mickle]

"Not advice", but check out the returns from Bull Put Spreads. Conversation started about June/July in this thread if memory serves me correctly. Some here have been getting 5-10% returns per week, without what I would consider excessive risk.

Like those Model S Plaid videos, after the acceleration test, many say "this should be illegal, I can't believe anyone can just buy these." I'm feeling that way about the BPS too!

 

[bkp_duke]

Like those Model S Plaid videos, after the acceleration test, many say "this should be illegal, I can't believe anyone can just buy these." I'm feeling that way about the BPS too!

Same here. It's like someone let us in on the secret that the pros on Wall St. use to make 8-figure incomes. It feels like cheating . . . and I intend to "cheat" all the way to the bank!

 

[The Accountant]

Like those Model S Plaid videos, after the acceleration test, many say "this should be illegal, I can't believe anyone can just buy these." I'm feeling that way about the BPS too!

Funny - I live in Greenwich CT and worked a solid corporate life to buy a home here and raise a family.
But I have always been amazed at young 30 year-olds buying multi-million $ mansions in "back-country" (the Wall Street crowd).

After I started writing Puts and Calls, I thought to myself, "this is too easy".
When I made a high 6 figure income last year with the Wheel (close to 7 figures), I told my wife, "now I know what those back-country kids are doing".

 

[ninpb]

First, gotta say this thread is a lot more entertaining to read after figuring out what bps, bcs, cc and such mean!

Second, regarding capital gains tax, short vs long. Long term TSLA shares in non-retirement account for the wheel.

First cc assigned would be long term cap tax.
Put, put, put assign.
cc, cc, cc assign.
Which of my TSLA am I selling? The remaining old shares or the new shares from my first wheel puts? I'm thinking it's my choice? Going forward, I would want to wheel with the new shares to minimize taxes?

Third, can TurboTax easily handle all this activity or do I need to think about how I prep my taxes(US) if I start?

Thanks!

 

[bkp_duke]

Third, can TurboTax easily handle all this activity or do I need to think about how I prep my taxes(US) if I start?

Find a CPA, and a good one (like cars, not all are created equal). A good CPA will pay for themselves 100X.

 

[UltradoomY]

First, gotta say this thread is a lot more entertaining to read after figuring out what bps, bcs, cc and such mean!

Second, regarding capital gains tax, short vs long. Long term TSLA shares in non-retirement account for the wheel.

First cc assigned would be long term cap tax.
Put, put, put assign.
cc, cc, cc assign.
Which of my TSLA am I selling? The remaining old shares or the new shares from my first wheel puts? I'm thinking it's my choice? Going forward, I would want to wheel with the new shares to minimize taxes?

Third, can TurboTax easily handle all this activity or do I need to think about how I prep my taxes(US) if I start?

Thanks!

Not sure which broker you use but in Schwab I have the ability to choose either FIFO (first in first out) or LIFO (last in first out) as defaults and can change it for each thing.

 

[Yoona]

First, gotta say this thread is a lot more entertaining to read after figuring out what bps, bcs, cc and such mean!

Second, regarding capital gains tax, short vs long. Long term TSLA shares in non-retirement account for the wheel.

First cc assigned would be long term cap tax.
Put, put, put assign.
cc, cc, cc assign.
Which of my TSLA am I selling? The remaining old shares or the new shares from my first wheel puts? I'm thinking it's my choice? Going forward, I would want to wheel with the new shares to minimize taxes?

Third, can TurboTax easily handle all this activity or do I need to think about how I prep my taxes(US) if I start?

Thanks!

TD Canada sent all my trades to Canada Revenue Agency (aka IRS) at tax time and TurboTax automatically downloaded all the data from CRA and computed the capital gains for each position

the only manual work i did was to eyeball the CRA receipts to make sure they received everything from TD

 

[ninpb]

Not sure which broker you use but in Schwab I have the ability to choose either FIFO (first in first out) or LIFO (last in first out) as defaults and can change it for each thing.

TD Ameritrade. Thanks I'll look into it.

 

[ChefBoyardee]

Looks like we have ourselves a breakout

I closed the last of my call-side positions yesterday - who knows what happens next. Sell-the-news could tank us back down into the channel but that's feeling pretty unlikely with how strong this quarter will be. A climb back to ATH might be in the cards