Since I don't need to hit homers anymore, I'm happy with $2-3/contract. I'm allergic to losing money. So more like the $500k club.The $1M a week club.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I hope you'll continue updating us on how this position evolves. For those reading along closely they might get nearly as good of an education on BPS management as you're getting by doing.
Only $500k? What a loser!Since I don't need to hit homers anymore, I'm happy with $2-3/contract. I'm allergic to losing money. So more like the $500k club.
I'm not sure if that is a rhetorical question, but the answer would depend on the date and strikes that you choose.
Though I am not at my goal share amount, my current focus is using BPS to build up cash in my account and then to buy shares using that cash. I guess I could use margin to buy shares and then use BPS to pay off that margin. However, that seems risker to me as I would need to use a lot more margin to buy shares plus cover BPS, compared with continuing to only buy shares with cash. Though my method may be slower (if there is a large run up from here), I am already 80% to my goal share amount so I do not want to risk a large step back. I also have a few DITM and OTM LEAPS for additional delta (actually exceeds my goal share count). If anyone disagrees or I am thinking about this incorrectly, please let me know.
Edited for clarity (I think)
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Always a little anxious around earnings and haven’t been trading TSLA options long (used to trade AAPL options when it was hotter a while back but took a vacation) So still a little skittish.
Just rolled some 780 short puts into some Nov 5 840s. It’s in my IRA and half hoping they get put to me, would be a net price of ~$825/ share. Otherwise more than willing to accept another ~1.5% return on my cash for the 2 weeks.
Just rolled some 780 short puts into some Nov 5 840s. It’s in my IRA and half hoping they get put to me, would be a net price of ~$825/ share. Otherwise more than willing to accept another ~1.5% return on my cash for the 2 weeks.
Not everyone is selling BPS. I rolled my fully cash backed puts from p750s to p800s (10/22 & 10/29). I would be ecstatic if the market decided to put me shares at 800 because it would mean my strangles and straddles (-c800s, -c850s, and -c900s) would expire worthless. I’m hoping for a sell the news Thursday, but don’t really expect it. Either way, I’ll make some money on some options and lose on others and will roll out another week. However, if the SP really takes off, then I’ll be left behind, only able to sell puts for around 1%/week. First world problems.
Ah… didn’t notice you on the other end of the boat.Not everyone is selling BPS. I rolled my fully cash backed puts from p750s to p800s (10/22 & 10/29). I would be ecstatic if the market decided to put me shares at 800 because it would mean my strangles and straddles (-c800s, -c850s, and -c900s) would expire worthless. I’m hoping for a sell the news Thursday, but don’t really expect it. Either way, I’ll make some money on some options and lose on others and will roll out another week. However, if the SP really takes off, then I’ll be left behind, only able to sell puts for around 1%/week. First world problems.
I think I need to be a little more conservative with strike prices if I want to keep doing this.
I may switch to selling spreads soon.
The long forgotten trend line broken back in May is now back in play. If this is what the market intends, I very much doubt we will see a severe sell off post ER, as long as it is a beat. My calls are really in the crap house today but seeing this put a smile back on.
Margin is always risker to use than cash. However, if TSLA dips $100 due to sell-the-news, I think the risk is very low that it won't go back up soon.
I suspect Smart Money knows TSLA is headed for the moon, and if they haven't bought yet, it's because they hope for (or are trying to engineer) a way to get in lower. They are playing chicken with each other and Dumb Money who don't understand Tesla but will soon. If Q3 earnings don't make things obvious, then Q4 will.
Knightshade
Well-Known Member
Eh, finally gave in and sold some $950 calls in IRA for Friday at $3/share.
Still not touching sold calls in my cash account, but lack of tax consequences makes one brave I suppose... (though not brave enough to sell $900s for significantly better premium despite the fact I'd be surprised if we close above it friday)
Still not touching sold calls in my cash account, but lack of tax consequences makes one brave I suppose... (though not brave enough to sell $900s for significantly better premium despite the fact I'd be surprised if we close above it friday)
What are the odds you see of breaching 900 by this Friday?Sold 900c (last friday), 930c & 950c.. and i kind of regret this.
I mean .. all backed by calls that expire months from now .. so i could roll up&out & hope for IV-crush/retraction on thursday.. not THAT nervous, but a bit unhappy that i coud have gotten a multiple of the premium ..
If I had an IRA, I would absolutely be selling 900 CC for Friday. If they got called away I would sell 900 Strike Puts the next week. If we breech 900, there will definitely be a buying opportunity below 900 in the future.
AquaY
Member
Thanks, I plan to update and plan to do somesort of writeup of the whole position after I close it. I'm tracking everything in Wingman.
Also, my interpretation:
Today move is a reflection of a market-wide change. Might not all be about TSLA. Below are my rationales:
1. LEAP call IVs didn't budge last week during the $65 run but they all go crazy today. Purely an ER FOMO run-up? I doubt it.
2. Stocks beaten up due to supply chain issues and chip shortage are all leading the market today. Looks like big buyers who have their finger on the global supply chain know something is improving.
In my opinion, a long-term trendline reflects the market perception about the long term growth of a company. Conveniently, we broke below the red trendline in May amid a global chip shortage, supply chain disruptions, and China dramas. Now that all of those things are almost in the rearview mirror, is it too crazy to expect TSLA to resume its previous trajectory which was more bullish than the current? My takeaways:
a. Today run-up is simply a product of delta hedging as well as big purchases intended to get TSLA up to the old trendline.
b. We're unlikely to run up much further from here until the ER confirms healthy gross margin.
c. I doubt we will end the week below 860 if ER is a beat.
d. We will continue to climb in the weeks ahead. My target for January is $1k.
pz1975
Active Member
I’m personally sitting on all my BPS (60-80% green so far) until before Wednesday close. I’m not selling any CCs until then because this baby could just keep riding up to that point. I will probably sell some way OTM calls (10-15%+) at that point especially if this run-up continues. I just can’t see a huge spike after ER if it keeps going up so much in anticipation this and last week.
Regretting those -c900 a little right now but I feel comfortable with my options. I would normally roll aggressively but like others I'm feeling less attached to my shares since I started selling BPS and I wouldn't really mind some more cash for put spreads. Might even do the wheel with a contract or two.
InTheShadows
Active Member
Was on vacation end of last week. Sold one set 645/-715 Friday which closed this am at 70% GTC order. Opened up another set 695/-760, have a GTC order for it to close at 50%. If we get a slight gap up it should execute at open. I’ll then do another one probably around 780 for the short leg. If GTC for that doesn’t close at 50% by Wednesday 3pm, I’m going to close it manually and open up another set with the short at delta -9. 100 wide.
The other array of accounts have short legs between 730 and 760 that I opened this am. They are between 24 and 40% profit right now. All have GTC orders for 50%.
The other array of accounts have short legs between 730 and 760 that I opened this am. They are between 24 and 40% profit right now. All have GTC orders for 50%.
I want to thank all the newcomers and veterans here conversing about BPS strategies. This thread is truly amazing and I want to thank everyone for sharing the highs/lows, risks/benefits, and being so forthcoming.
I sold my first lot of 5 x 10/22 BPS -775/+755 today after learning through this thread last week. My short 10/22 $775 put sold last week is doing well and I can close it out Wednesday for a great profit. Holding back the impulse to sell CCs today since there may be another run-up tomorrow and Wednesday for better premiums OTM (easier to sleep at night as well).
Learning to use my margin safely and effectively has netted me more than I make in my working week. Though this isn't hard since I'm a mental health therapist/counselor. But with my winnings, I am now able to pass those on to help my therapy clients through discounts and lowering the fee I charge them for services. It is a huge life changer both for myself and my clients, as I'm used to making around 60k/year. I've used margin in the past for shares but have not used any since 2019. So now I'm going back to commit my margin to run BPSs, letting me make my monthly salary in a week! All while being a better therapist without worrying about my own financial situation or the financial situation of my clients. Of course, I've learned to only see my clients AFTER the trading day has ended.
I use Webull for my brokerage account and they have an"Options BP" margin section, letting me know how much margin I have to use for options. It is equivalent to how much cash I am able to withdraw out of my account. I plan on hitting 10% OTM BPS weeklies, as I learn how to navigate the adjustments and the closes. Webull also doesn't charge any fees for options, but they don't have a "roll" function and are only FIFO, no LIFO, so I may transfer my funds to Etrade that allows for LIFO, even if they do charge me options fees.
I also have an IRA through Etrade where I hold shares but have options level 3, allowing me to do vertical put spreads (a.k.a BPS). I may sell some shares to do some BPS and rep the benefits of trading in a tax-advantaged account if we do drop-down back to the 700s or hit 1600 (yes, I am that bullish/cultish). Though with this run-up, it reminds me more of 11/2019, when we broke through 420 (pre-split) and it kept going until 1,000 (pre-split) due to institutions buying in. On the 2019 run-up, it lacked the "1-time" catalyst of S&P 500 inclusion and the stock split that led to the massive 2020/2021 run-up. I am privy to selling my shares, as the one time I ever did was 3/2020 @80 and had to buy back in @200.
Of course, with all the upside talk, I am aware of how fast things can turn. Those were some dark days I'd never want to revisit and am being cautious to avoid having my personal/family/work-life affected by sudden gap downs. Just going back to Spring: 4/13 closes 762, 4/19 closes at 714, (low for the day 691). A month later it closed 571 with a low for the day of 559. With these drops in mind, I will probably set my BPS with wider spreads to account for any big gaps, allowing me to adjust without getting my short & long puts getting stuck in the crosshairs.
Happy trading y'all and looking for more exciting action tomorrow!
I sold my first lot of 5 x 10/22 BPS -775/+755 today after learning through this thread last week. My short 10/22 $775 put sold last week is doing well and I can close it out Wednesday for a great profit. Holding back the impulse to sell CCs today since there may be another run-up tomorrow and Wednesday for better premiums OTM (easier to sleep at night as well).
Learning to use my margin safely and effectively has netted me more than I make in my working week. Though this isn't hard since I'm a mental health therapist/counselor. But with my winnings, I am now able to pass those on to help my therapy clients through discounts and lowering the fee I charge them for services. It is a huge life changer both for myself and my clients, as I'm used to making around 60k/year. I've used margin in the past for shares but have not used any since 2019. So now I'm going back to commit my margin to run BPSs, letting me make my monthly salary in a week! All while being a better therapist without worrying about my own financial situation or the financial situation of my clients. Of course, I've learned to only see my clients AFTER the trading day has ended.
I use Webull for my brokerage account and they have an"Options BP" margin section, letting me know how much margin I have to use for options. It is equivalent to how much cash I am able to withdraw out of my account. I plan on hitting 10% OTM BPS weeklies, as I learn how to navigate the adjustments and the closes. Webull also doesn't charge any fees for options, but they don't have a "roll" function and are only FIFO, no LIFO, so I may transfer my funds to Etrade that allows for LIFO, even if they do charge me options fees.
I also have an IRA through Etrade where I hold shares but have options level 3, allowing me to do vertical put spreads (a.k.a BPS). I may sell some shares to do some BPS and rep the benefits of trading in a tax-advantaged account if we do drop-down back to the 700s or hit 1600 (yes, I am that bullish/cultish). Though with this run-up, it reminds me more of 11/2019, when we broke through 420 (pre-split) and it kept going until 1,000 (pre-split) due to institutions buying in. On the 2019 run-up, it lacked the "1-time" catalyst of S&P 500 inclusion and the stock split that led to the massive 2020/2021 run-up. I am privy to selling my shares, as the one time I ever did was 3/2020 @80 and had to buy back in @200.
Of course, with all the upside talk, I am aware of how fast things can turn. Those were some dark days I'd never want to revisit and am being cautious to avoid having my personal/family/work-life affected by sudden gap downs. Just going back to Spring: 4/13 closes 762, 4/19 closes at 714, (low for the day 691). A month later it closed 571 with a low for the day of 559. With these drops in mind, I will probably set my BPS with wider spreads to account for any big gaps, allowing me to adjust without getting my short & long puts getting stuck in the crosshairs.
Happy trading y'all and looking for more exciting action tomorrow!
As a wayward BCS seller, Please Elon, sell your shares thursday to pay those taxes.... just dump them ok? ... rip that bandaid off please.... sincerely, buttershimp
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