Wiki Selling TSLA Options - Be the House

[samppa]

I have been rolling AAPL covered calls out for trades I would never have accepted in the beginning. I have resigned to let them get called away at $180 in April. I don’t wanna buy back for $20,000 the Covered call contracts I initially sold for $100 when the IV was at its lowest in hundred years. If you beat my -20,000% trade I will give you my eternal degenerate option trader respect. At least these 1700 AAPL shares will let me buy 300 extra TSLA shares or 200 after taxes. This is a *almost* a well thought move in retrospect. To force me to sell AAPL to buy TSLA. At least it was a learning experience on how covered calls could go wrong. Who needs AAPL dividends anyway? :X

Good luck to you in your recovery. Hope your wife doesn’t laugh at you every time she pulls the ticker symbol to make fun of my learning curve. I guess that’s part of being with an engineer who only understand numbers

Well, if you were planning to sell those shares anyway, doesn't seem like such a bad outcome..
I sold one lot at 1050. Almost broke even on that.

 

[intelligator]

Just closed one of two remaining spreads that evolved from November panic rolls. The 12/31 930/800 is finally booked @ 90% ! The other is a Jan 14 920/820 that I will hang on to a few more points, it is now @ 65%. Contemplating closing and taking a new position.

Moved a single 12/31 1050 CC to 1/7 1080 for just over $5 credit, it's a learning experiment half @Drezil approach , using the shares i am long. Really trying to get comfortable with extrinsic value by not having a situation where I roll out with no immediate risk. Taking this one my way to learn from, I do realize now the benefit of a calendar call spread. Thank you for sharing that initial trade and the discussions that came out it.

Update: Closed out the remaining 920/720 @ 70% for a never imagined profit! Thanks again to all who have given not advice; it helped me form a plan that works for me. The number one takeaway for myself ... don't be greedy, come back tomorrow, there's more where this came from !

 

[ABC2D]

Any specific reasons why you don't trust this squeeze? A quick glance at the hourly chart shows a lot of strength. It did not lose hourly support even once today, it's been a gradual climb throughout the day. The options flow is also very strong.

I have no question in my mind that we gap up on Monday especially the hourly support holds going into the close.

I was thinking the same. I hesitated in the morning and did not open any positions just watched stock run away. So, I decided not to chase it, but it looks very strong and now I'm thinking to get something open, -p900/+800 maybe, to get long weekend theta and anticipating strong Monday

 

[cbh03]

Doing our part (for Q4 2022??) and upgrading our 2014 Model S. This would not have been possible without all of the helpful education, strategies, and not advice from this thread. Thanks to all who contribute and Happy Holidays!

My goal is to earn enough to theoretically pay for the Model S with profits from options trading between now and delivery, which is currently scheduled for Nov. 2022. However, I plan to use any profits for shares and Leaps and just take a loan for the car.

 

[Xepa777]

So uh...what tax platform does everyone here use? Hahaha. Anything that can just upload a tax doc from Charles Schwab and spit something out?

 

[Right_Said_Fred]

With the shortened trading window (2 less trading days) and P&D…

I know the markets are closed tomorrow. But which is the second day?

 

[Right_Said_Fred]

I felt comfortable enough to STO 5 c1245 12/31 for 3.15 and an hour later 5 c1250 12/31 for 3.00. I’m not expecting Curt Renz’s polka band to play within a week.

 

[adiggs]

So uh...what tax platform does everyone here use? Hahaha. Anything that can just upload a tax doc from Charles Schwab and spit something out?

I've been a Turbotax guy for decades. Its possible that this year will be the last - I think the taxes are going to be significantly more complex in the future, and I think I'll be learning that in a hands on / skin in the game way this year.

 

[Yoona]

So uh...what tax platform does everyone here use? Hahaha. Anything that can just upload a tax doc from Charles Schwab and spit something out?

TD Canada sends tax receipts directly to Canada Revenue Agency. Intuit TurboTax downloads the receipts from CRA.

 

[strago13]

I know the markets are closed tomorrow. But which is the second day?

I naively assumed they were closed for New Years on either Friday or Monday. You are correct!

 

[BornToFly]

So uh...what tax platform does everyone here use? Hahaha. Anything that can just upload a tax doc from Charles Schwab and spit something out?

I use Turbo Tax. It just imports all my tax information from Fidelity. Hopefully it works again this year, because this time I have a 2019 option loss on 12/31 that didn't "post" until January, so I couldn't take the loss last year, but I am worried it won't show up for a loss this year since the trade was in 2019. Fidelity does use that loss in my year-to-date tax activities for this year, so fingers crossed that Turbo Tax does it correctly....

 

[strago13]

We also use Turbotax, but I think if we proceed with Andersen Advisors, our taxes will be too complex to do on our own.

 

[Ad Astra]

Update: Closed out the remaining 920/720 @ 70% for a never imagined profit! Thanks again to all who have given not advice; it helped me form a plan that works for me. The number one takeaway for myself ... don't be greedy, come back tomorrow, there's more where this came from !

^^This right here. I’ve been rolling down a 940/840 position that I opened right before the free fall to 880’s. It was nice to close out the final 910/810 for a hefty profit this morning but man does my timing stink. Closed out on the second leg up when stock was only up 10 points The bright side is all my chips have been freed up and they are ready for the next hand.

Thank you to all for your insights and special thanks to @BornToFly @adiggs @Lycanthrope. Your transparency and level headedness throughout this descent really helped me keep my cool and trade on reason rather than emotion (much tougher than I anticipated tbh).

 

[M3Rider]

Was going to leave it at that, but yesterday added
12/23 100x -1105cc @.35

Well, those strikes/commissions were not too bad.

Closed @.10
And sold 12/31
20x 1200ccs @5.10
40x 1250ccs @2.85
26x 1300ccs @1.55 (partial fill)
most of these are against leaps.

 

[BornToFly]

I have 12/31 750/950 at 94% profit. 12/31 700/900 at 95% profit. Today I opened 700/900 for Jan 7 that are already at 44% profit.
The only reason I'm not closing out the 12/31s and selling new spreads is because they contain the losses from rolls the week before. If I close them out now, I have $3M more income to pay taxes on for 2021. If I close them on 12/31, the profits counts as income in 2022 and I can wait to pay taxes until April 2023. I can make a lot of money on an extra $1.5M that is compounding over the next year.

 

[wooter]

I felt comfortable enough to STO 5 c1245 12/31 for 3.15 and an hour later 5 c1250 12/31 for 3.00. I’m not expecting Curt Renz’s polka band to play within a week.

Interesting setup.

I followed your suit, 5 -1250c +1390c gave me an interesting return within my margin.

 

[BornToFly]

Interesting setup.

I followed your suit, 5 -1250c +1390c gave me an interesting return within my margin.

I'm too chicken for 1250 going into the Friday before Q4 numbers are released. There could be a FOMO induced squeeze. I put an order to sell 1350/1550 but it didn't hit my limit price.

 

[MP3Mike]

If I close them on 12/31, the profits counts as income in 2022 and I can wait to pay taxes until April 2023. I can make a lot of money on an extra $1.5M that is compounding over the next year.

Are you sure about that? I just got a notice from my broker that long stock and long, and short, options are taxed based on the trade date. (Only short stocks are taxed based on the settlement date.)

This site agrees: Trade Date and Settlement Date – Fairmark.com

General rule: trade date controls​

For most purposes, the tax law uses the trade date for both purchases and sales. For example, if you sell stock on December 31, you’ll report the gain or loss that year, even though the transaction will settle in January. Trade dates also govern in determining whether your holding period is short-term or long-term, in determining whether the wash sale rule applies, and in determining whether you have a qualified dividend.

 

[BornToFly]

Are you sure about that? I just got a notice from my broker that long stock and long, and short, options are taxed based on the trade date. (Only short stocks are taxed based on the settlement date.)

Options take 3 days to settle. I called Fidelity when I did our taxes in April because I really wanted that loss on my 2020 taxes, but they explained that the settlement date is what they use for OPTIONS, not the trade date. I was led to believe that stocks are different (but don't know about short vs long).

 

[BornToFly]

Are you sure about that? I just got a notice from my broker that long stock and long, and short, options are taxed based on the trade date. (Only short stocks are taxed based on the settlement date.)

This site agrees: Trade Date and Settlement Date – Fairmark.com

From the link you posted:

"Exceptions​

You should be aware of a couple of exceptions:

• When you close a short sale at a loss, the tax law treats the transaction as occurring on the settlement date. See Last Day to Sell."

I had bought back CCs at a loss to get rid of them and lower my tax bill. But the settlement date rule screwed me and I had to pay $700k more in taxes than I had planned because I couldn't take the loss last year.

So I guess the question will be what happens if it is NOT a loss? Leave it to our government to want your money without delay when it is a profit, and kick it out a year when it is a loss.....