Wiki Selling TSLA Options - Be the House

[cbh03]

STO 980P (to create a BPS with 650P I bought last week) for 12/31. I had 650/850 12/31 BPS last week, but STC the 850P on Friday to de-risk over the weekend.

Also considering selling calls at 1300 or above for 12/31 if we sustain this upward momentum today.

 

[juanmedina]

I closed all my covered call right at open -$14.5k but so far it looks like it was the right decision. I opened $1050 put at open already at 50% profit and sold some $1255cc for $5. At $1230-1255 I am ok with saying good bye to my shares and just doing puts or spreads.

 

[Right_Said_Fred]

STO c1300 12/31 for $3.30 at 1090. We’re now 20 points higher and still it went down to $2.45.

 

[ZeApelido]

Wow haven't sold covered calls in a long time but felt like it was good timing, sold 12/31 $1205's for $7.50

 

[ABC2D]

Most of you in this thread are much MUCH more experienced, knowledgeable, and simply braver than me but I just cant find a good entry since Thursday for BPS (just wont do calls at this stage). I hesitated and missed Friday MMD after which stock run away. I also missed today MMD, but appears price is stabilizing and I just might find an entry door

 

[Oil4AsphaultOnly]

Wish me luck! Sold some 12/31 BPS 900/1000 two hours before market closed. There's no analysis behind it, just banking on a possible year-end rally with the end of Elon's stock sales as a catalyst.

Wow! It worked out! closed the short leg a moment ago for 70% profit when it started to look like we might've reached the top for the day. Will see if there is an opportunity to re-open the short leg later today or tomorrow morning (there always seems to be a dip on tuesdays).

 

[FS_FRA]

STO 12/31 -1280c @ $1.80 - low, but covers my weekly goal. I don't see us above ATH this week. Was considering BPS in the mid-high 900s for more premium, but the rise so far has been so strong in the past days, that I fear a final pushdown this year before

PapaFox chart to wit:

 

[wooter]

If these are naked calls (not covered by shares), then in theory your loss could be 5 x $14,000, but for that to happen we need to go to 1390 within a week. That’s extremely unlikely. But if we get close to 1250 and you expect expiry on Friday to be above 1250, you could buy back the calls for a much smaller loss. That would be painful. But you could also roll the position one week out to a higher strike. Why wouldn’t you?

At opening, IBKR sent me a liquidity warning, and at 10 minutes into trading triggered to buy back 1 of my 1250c contracts. And that's probably because the current P&L was dipping under my margin. I think.

 

[Right_Said_Fred]

At opening, IBKR sent me a liquidity warning, and at 10 minutes into trading triggered to buy back 1 of my 1250c contracts. And that's probably because the current P&L was dipping under my margin. I think.

I’ve never experienced that, but that must be because I make sure my initial margin and maintenance margin always leave a lot of room for error. I guess that when you sold those 5 calls 1250 on Friday you already used up a lot of your available margin and when this morning the value of those calls quickly more than doubled, it triggered a liquidity problem. Another reason to start slowly with just 1 or 2 contracts. And always make sure (by using the ‘preview’ function of IBKR) that you have plenty of initial margin and maintenance margin left if you confirm the trade.

 

[Yoona]

1/7 $1.3M layered BPS 21 DTE... $1M already realized after 10 days, plus 300k additional theta the next 11 days; $2.6M bet gains 50% in 3 weeks if brought to expiration

this is a "come and get me, boys" trade; trick is not to open a position for the current week coz prem is too low

how did i do it? open 14-21 DTE and close early, then repeat every week; this is to take advantage of higher prems on later weeks

week 1 - STO BPS #1 14-21 DTE
week 2 - STO BPS #2 14-21 DTE
week 3 - BTC BPS #1, STO BPS #3 14-21 DTE
week 4 - BTC BPS #2, STO BPS #4 14-21 DTE
week 5 - BTC BPS #3, STO BPS #5 14-21 DTE
etc

if SP goes south and i am DITM, who cares? profit is too big so i can spend some of it to ride out the storm (even if roll here and there is a debit)

i also add 30-40% DOTM BCS weekly for gravy

not for the faint-hearted and not advice!!! i am normally 20% OTM but sometimes have a "dare" trade

in other news... i am thinking STO 1/14 -p900/+p800 at tomorrow's 10:30am dip

 

[OrthoSurg]

I’ve never experienced that, but that must be because I make sure my initial margin and maintenance margin always leave a lot of room for error. I guess that when you sold those 5 calls 1250 on Friday you already used up a lot of your available margin and when this morning the value of those calls quickly more than doubled, it triggered a liquidity problem. Another reason to start slowly with just 1 or 2 contracts. And always make sure (by using the ‘preview’ function of IBKR) that you have plenty of initial margin and maintenance margin left if you confirm the trade.

I feel IBKR is tighter for the margin management control.
At some point 2 weeks ago I had sold multiple put contracts 30% OTM with strike prices in the 700s when we were in the 900s. When the stock reached its lows my brokerage margin contracted and at some point it was showing a negative number in my margin available. At that point when I wanted to buy back some profitable covered calls it told me someone of the Brockerage team had to review my transaction. I was expecting an email or a call or whatever to correct that -250k negative purchasing power and was ready to move that money from my advisor account that I am trying to merge but never had any call and they did not liquidate any position.

Since I have 3 different brockerage accounts associated with my HoldCo and MedCo, the issue is not liquidity but total margin power separated in 3 different account I am trying to transfer to IBKR but my accountant is not sure how to proceed to roll my holding from MedCo to HoldCo without declaring realized gain. He has been on the project for over 9 months. Enough for me to double my assets. In the meanwhile I am receiving automated Messages from IBKR informing me it has been 60 days since I have opened my account and no funds transferred yet.

 

[BornToFly]

1/7 $1.3M layered BPS 21 DTE... $1M already realized after 10 days, plus 300k additional theta the next 11 days; $2.6M bet gains 50% in 3 weeks if brought to expiration

View attachment 748878

this is a "come and get me, boys" trade; trick is not to open a position for the current week coz prem is too low

how did i do it? open 14-21 DTE and close early, then repeat every week; this is to take advantage of higher prems on later weeks

week 1 - STO BPS #1 14-21 DTE
week 2 - STO BPS #2 14-21 DTE
week 3 - BTC BPS #1, STO BPS #3 14-21 DTE
week 4 - BTC BPS #2, STO BPS #4 14-21 DTE
week 5 - BTC BPS #3, STO BPS #5 14-21 DTE
etc

if SP goes south and i am DITM, who cares? profit is too big so i can spend some of it to ride out the storm (even if roll here and there is a debit)

i also add 30-40% DOTM BCS weekly for gravy

not for the faint-hearted and not advice!!! i am normally 20% OTM but sometimes have a "dare" trade

in other news... i am thinking STO 1/14 -p900/+p800 at tomorrow's 10:30am dip

Correct me if I'm wrong, but that only works if the SP is holding or climbing. If it is dropping, you can't buy back on week 3-5 because premiums will actually be higher.

 

[BornToFly]

I'm torn on getting more aggressive with my mom's IRA. I have 600/850s for 1/7 at 95% profit. Exceeded her weekly goal by a lot. I could get greedy and roll it up to 675/925 for $2.50. Thoughts? Still with the easy win, or gamble a little?

 

[FS_FRA]

I'm torn on getting more aggressive with my mom's IRA. I have 600/850s for 1/7 at 95% profit. Exceeded her weekly goal by a lot. I could get greedy and roll it up to 675/925 for $2.50. Thoughts? Still with the easy win, or gamble a little?

Take the 95% and open a new position, new position at condition that work for you/mom - that's what I'd do.

 

[MikeC]

Has anyone tried selling diagonal BPS? The same idea as using a DITM LEAP to sell CCs against, but instead using a FOTM long put to lower collateral needed to sell weekly short puts against.

It occurred to me that if already doing wide spreads with FOTM long puts, there's not much difference between buying say a 1/7 500p for $0.12 compared to a 1/21 500p for $0.35. But the 1/21 expiration means you could use the same long put to cover 3 weeks in a row of weekly short puts.

I think the main benefit would be that if you have to roll your short leg out a week, you just keep the same long leg - so you can roll it almost as if it was a naked put and actually free up as much margin as you can roll it down for, since the long put doesn't change. And if we get a black swan, a FOTM long put 3 weeks out will gain more than a FOTM weekly long put, which could still expire worthless and will need to be replaced with a now more expensive long put for the following week. And you save on commissions and bid-ask slippage with fewer transactions.

Testing this out today - I bought 2x 2/18 500p for $1.20 each and sold 2x 12/31 1000p for $2.80 each. Hope to be able to use the 2/18s as my lower leg for BPS for the next couple months, regardless of exactly where the short leg will be any given week.

 

[BornToFly]

1/7 $1.3M layered BPS 21 DTE... $1M already realized after 10 days, plus 300k additional theta the next 11 days; $2.6M bet gains 50% in 3 weeks if brought to expiration

View attachment 748878

this is a "come and get me, boys" trade; trick is not to open a position for the current week coz prem is too low

how did i do it? open 14-21 DTE and close early, then repeat every week; this is to take advantage of higher prems on later weeks

week 1 - STO BPS #1 14-21 DTE
week 2 - STO BPS #2 14-21 DTE
week 3 - BTC BPS #1, STO BPS #3 14-21 DTE
week 4 - BTC BPS #2, STO BPS #4 14-21 DTE
week 5 - BTC BPS #3, STO BPS #5 14-21 DTE
etc

if SP goes south and i am DITM, who cares? profit is too big so i can spend some of it to ride out the storm (even if roll here and there is a debit)

i also add 30-40% DOTM BCS weekly for gravy

not for the faint-hearted and not advice!!! i am normally 20% OTM but sometimes have a "dare" trade

in other news... i am thinking STO 1/14 -p900/+p800 at tomorrow's 10:30am dip

Here is the option chain for $1000 strikes. You don't make more/week going out more weeks. You are counting on the premium dropping a lot after purchasing farther expirations, but that only happens if the SP moves in the right direction. Right?

 

[BornToFly]

Take the 95% and open a new position, new position at condition that work for you/mom - that's what I'd do.

Right, but the only way to make more money on a new position is to chase the SP since I don't want to go farther than 1/7 just yet. It will all come down to delivery numbers released over the weekend. My mom's IRA is supposed to be my no-gamble zone....

 

[Tslynk67]

Right, but the only way to make more money on a new position is to chase the SP since I don't want to go farther than 1/7 just yet. It will all come down to delivery numbers released over the weekend. My mom's IRA is supposed to be my no-gamble zone....

Do yourself and her a big favour buy keeping it a no-gambling zone!

 

[ReddyLeaf]

Right, but the only way to make more money on a new position is to chase the SP since I don't want to go farther than 1/7 just yet. It will all come down to delivery numbers released over the weekend. My mom's IRA is supposed to be my no-gamble zone....

Exactly. Chasing SP only works when the trend follows your guess. So, to not follow my own advice, just rolled my CSPs up.
BTC 1/14 -p900s at $6.40 (about 75% profit)
BTC 1/14 -p950s at $11.80 (about 75% profit)
STO 1/14 -p1070s at $43.50
Edit: Rolled more
BTC 1/14 -p990s at $18.80 (about 50% profit)
STO 1/07 -p1060s at $27.80 (decided to shorten duration)

I’m hoping for a small SP rise and IV drop after P/D numbers come out. Not too much, otherwise I will wish that I’d bought calls with all this cash.

 

[CHGolferJim]

After several weeks off for holidays and while Elon sales dust settled, ventured back in today:

* STO 123121C1100 at $32.95 on the $1073 non-core buy-write (expect to roll)
* STO 123121C1200 at $10.98 on 60% of core long shares (?)
* STC 031822C1100 at $130 on 3 of 4 purchased 12/14 for $62.50; 4th LO at $150
* watching 2x011422C1100 re roll timing probably week of 1/10