Wiki Selling TSLA Options - Be the House

[Chenkers]

My IB account has finally updated to show the correct share and options values and quantities. Earlier it was just the options values that had updated along with my account showing -108% excess liquidity. Thankfully all fixed now.

One thing I think we'll all have to adjust to is deciding what is an appropriate spread width for new BPS and BCS. I've been used to doing $40 wide spreads lately while many others do $100 or more. These wont be appropriate anymore as they'll use up too much margin versus the actual price movement risk and premiums. My current $40 wide spreads are now showing as $13.33 wide, so I'll likely go to $15 in future. Also 3x more total spreads to get the same premium versus margin usage. For a previous $100 wide spread, around $35 would seem roughly equivalent (11.67% move from $300 vs 11.11% move from $900)? Similar happened after the last split but the rapid rise in TSLA soon made it feel like nothing much had changed.

Are people looking to do similar or are you looking at these kind of spreads differently now?

 

[Drezil]

Lol my IBKR is bugging out hard. I have some naked short calls I sold and it's not working well with the split. I'm in -200k maintenance margin lol. Hopefully IBKR doesn't freak out and liquidate my position on premarket.

-450% margin warning over night here

 

[OrthoSurg]

i am soooo excited to 3x my shares tomorrowwwwww

husband will think i must be a genius working miracles on my trading

i am soooo excited to 3x my shares tomorrowwwwww

husband will think i must be a genius working miracles on my trading

For now My portfolio looks like I sold all my TSLA to buy Rivian at IPO.

I have the same number of shares but the price was cut down in 3

Looks like my option trading success so far

 

[juanmedina]

-450% margin warning over night here

My PM buying power doubled here with E-trade

 

[phantasms]

JPM got my shares and sp right but is showing a cost basis of zero. Honestly that's pretty close to a fair number.

BUT...all of my options are gone. Calls I bought, calls I sold...gone. Still showing my FOUR covered calls.

I guess that makes it easy for me today to sit on my hands. lol

 

[Drezil]

Why have 1 max-pain, when you can have 2:

so .. this site also got kind of broken

 

[BornToFly]

Everything looks correct in my Fidelity account. The numbers are just confusing to look at with all my spreads. It will take a while to get used to the new numbers....

 

[willow_hiller]

Post split, I think I'm in a comfortable place to begin selling covered calls. I was wondering if anyone has properly back-tested selling monthly expiries once per month vs selling weeklies once per week?

Unfortunately, I only have a sample of options data that I manually collected from 2021-09-13 until 2021-10-08, so it's not systematic, but I did test two strategies with it without looking at the SP performance prior to running the tests:

Strategy 1 was selling a covered call at the bid on Monday 2021-09-13 with a expiry of 2021-10-08 and a strike nearest to the underlying +20%, and then BTC it at expiry for whatever the ask was. Since the underlying was 743 that Monday, the strike of the call ended up at 890, sold for 1.03 per share, and BTC for 0.01 per share, for a total profit of 1.02 per share.

Strategy 2 was selling 4 covered calls, once every Monday on 2021-09-13, 2021-09-20, 2021-09-27, and 2021-10-04 with expiries the following Friday. I started off with strikes of underlying +5%, and weeks 1, 3, and 4 generated a total profit of 6.35 per share, but week 2 went ITM and was BTC for -8.80 per share, leading to a monthly loss of 2.45 per share. So bumping that up to underlying +10%, all 4 weeks end up OTM, and I ended up with a total profit of 1.41 per share (or about 27% more profitable than strategy 1).

Has anyone done similar backtesting? Or could someone point me in the direction of any good data source that would enable me to backtest more than just one random month?

 

[EVCollies]

STO 9/2 CSP 285 @ $4.05, hoping I divided and multiplied my 3s correctly...

 

[BornToFly]

They're back.....

(The short sellers)

 

[OrthoSurg]

They're back.....

(The short sellers)

WoW that’s a crazy short selling bear attack right now

 

[scubastevo80]

Given the early morning activity - I wrote a couple of ICs 275-315 for tomorrow at $.50. Will likely consider closing EOD if they've moved within 3% of either bound.

 

[BornToFly]

Made $5x3 = $15 rolling 285CC from buy/write to next week.

 

[ZsoZso]

It seems to me the call prices dropped more than the split would explain.
E.g. yesterday 930 strike weekly was trading from $10 down to $4 roughly, that would be 310 strike today and that is now below $0.50, which is much lower than the price adjusted $4 -> $1.33.
Similar for Sept.16 calls I have and even June.2024 calls dropped in value much more than split adjustment.

 

[intelligator]

It seems to me the call prices dropped more than the split would explain.
E.g. yesterday 930 strike weekly was trading from $10 down to $4 roughly, that would be 310 strike today and that is now below $0.50, which is much lower than the price adjusted $4 -> $1.33.
Similar for Sept.16 calls I have and even June.2024 calls dropped in value much more than split adjustment.

I am seeing the same. The initial thought was to roll to non-fractional strike. Looking at like strike, about 60% or more of the premium available yesterday went away. I now have to roll down and out for about less than the credit that I could have rolled yesterday at even strike. For reference, rolling 261.67 to Sep 2 from a buy write.

 

[strago13]

STO 02SEP2022 285 puts for $4.2 on the dip. Seems weird to watch the SP not move very much anymore.

Premiums seemed about on par w/ before the split...so my hopes of an extra ~30% seem dashed

 

[stealthyc]

It seems to me the call prices dropped more than the split would explain.
E.g. yesterday 930 strike weekly was trading from $10 down to $4 roughly, that would be 310 strike today and that is now below $0.50, which is much lower than the price adjusted $4 -> $1.33.
Similar for Sept.16 calls I have and even June.2024 calls dropped in value much more than split adjustment.

IV did plummet as well, though I don't know if that would fully make up the difference.

 

[BornToFly]

Premiums seemed about on par w/ before the split...so my hopes of an extra ~30% seem dashed

Patience Grosshoper...

 

[BornToFly]

I am grateful for a strong Macro day, otherwise the short sellers could have had a field day this morning. Let's hope it continues.

 

[Nocturnal]

Any benefit in rolling oddball options that are now worth say $933.33 to even numbers? Not sure if liquidity will be an issue.