Wiki Selling TSLA Options - Be the House

[ZsoZso]

Is this how you supposed to play this game on Fridays?

That's 2 rounds of selling 10x300CC at prices ranging from $1.77 to $2.86 and then covering them in the range of $1.00-$1.1
for a total of roughly $2K cash profit in 11 minutes.

 

[adiggs]

My observation of the morning is that the split has pushed up my cost of doing business by a lot (3x in fact ). Paying $65 commission on a position that has a max gain of $6500 is not my idea of a fun time. I'll get to pay that again on the way out.

Anybody do an account position transfer to a new broker semi-recently have insight into how quickly they really happen? I don't really want to take a week off but if I shift to Tastyworks then that same position would cost $20 on the way in and $0 on the way our (a BPS). I'm going to be trading a lot more contracts now - the commissions suddenly look big enough to do something about them.

 

[phantasms]

Must be nice.

 

[MikeC]

This whole week has been ridiculously low volume. I'm wondering if the MM/hedges wanted to kill all the speculative contracts that people bought for this week to play the split. We've basically been flat for a month. As an option seller, I'm not complaining, but it seems like something has to give. I just hope the split hasn't reduced volatility (and our premiums) going forward.

 

[dc_h]

Whiskey Tango Foxtrot! There was a sudden spike in TSLA and equivalent dip in the S&P, DOW, and NASDAQ about 15 mins ago. Was that a glitch in the indexes catching up to the split?

Powell was speaking.

 

[phantasms]

My guess is that MMs are propping up the stock today. I closed my 296.67 calls for a few bucks earlier in the day. I was going to wait for a Monday morning pop to sell 300c but now I'm wondering, as the major averages have dropped through a lot of support levels, if I should just sell for next week before the close today.

Bear trap today or the long anticipated pullback of the bear market rally. hmmm

 

[juanmedina]

This whole week has been ridiculously low volume. I'm wondering if the MM/hedges wanted to kill all the speculative contracts that people bought for this week to play the split. We've basically been flat for a month. As an option seller, I'm not complaining, but it seems like something has to give. I just hope the split hasn't reduced volatility (and our premiums) going forward.

I actually think it will work the opposite way long term. Maybe there is too many odd strikes out there and when those clear out premiums will raise .

 

[Yoona]

tomorrow is 281-311 95% probability

(edit)
and 9/2 +- 20%OTM is 236-355 (as of tonight's chain)

View attachment 845184

today's big drop was still safe inside the 95% stat

lemme come back next week to see if these also will work:
9/2 ITM probability
68% 265-311
95% 244-336

 

[EnzoXYZ]

My observation of the morning is that the split has pushed up my cost of doing business by a lot (3x in fact ). Paying $65 commission on a position that has a max gain of $6500 is not my idea of a fun time. I'll get to pay that again on the way out.

Anybody do an account position transfer to a new broker semi-recently have insight into how quickly they really happen? I don't really want to take a week off but if I shift to Tastyworks then that same position would cost $20 on the way in and $0 on the way our (a BPS). I'm going to be trading a lot more contracts now - the commissions suddenly look big enough to do something about them.

I had to double look at the commission fee line today as I placed my 260/200 BPS for next week. The premium seems lower but the commission balloon 3x. As things stand I'll be paying $150-$200 or so a week which is substantial vs the income I receive. Here are few things that ran in my mind besides switching brokerage firms. I will try to let options expire at end of the week as I rarely use more than 1/2 the margins available. I can move a few strikes closer to ATM for better premiums. I sent a request to have my option fees reviewed at Schwab.

Would appreciate what others are thinking now that we get 1/3 less premium and need to 3x the quantity.

All would be solved if Tesla trades at 700-800 range again

 

[Max Plaid]

i can't decide if next week is buy-write or sell -p (perhaps 50/50)

what are you guys thinking?

I closed out my -c300's relatively early today, hoping for a recovery that never came...

There was a bit of a "pop" towards the close so I decided to get what I could for next week and STO 90x -c300 @$3.5

That's half what I got last week, but still >1% of roic and above my weekly target, so it's fine

As I said last week, better than two in the bush, eh?

Oh yeah, despite me saying my portfolio had been fixed, the LEAPS regressed back to their pre-split symbol... meh, no rush for those...

 

[Drezil]

today's big drop was still safe inside the 95% stat

lemme come back next week to see if these also will work:
9/2 ITM probability
68% 265-311
95% 244-336

I thought about selling safe 350c over the weekend on nearly everything not currently covered..
I the checked. And it was an awfully small premium..

 

[Max Plaid]

Closed them out @$0.02. Have a great weekend y'all!

 

[phantasms]

I closed out my -c300's relatively early today, hoping for a recovery that never came...

There was a bit of a "pop" towards the close so I decided to get what I could for next week and STO 90x -c300 @$3.5

That's half what I got last week, but still >1% of roic and above my weekly target, so it's fine

As I said last week, better than two in the bush, eh?

Oh yeah, despite me saying my portfolio had been fixed, the LEAPS regressed back to their pre-split symbol... meh, no rush for those...

Once again same here, though sadly with a much smaller amount. lol

I did open a 295 for $5 right before the close. Hopefully I’ll do the rest Monday at 300 over $5 but I wanted to increase my “money in hand now” figure in case the bloodbath continues.

My guess is one more big move up to wreck the shorts before heading back down. Fingers crossed as I can’t “give away” these shares at $300 no matter how hard I try. lol

Enjoy NY. Hit me up if you go to Westchester.

 

[Yoona]

my latest exercise tonight is adding a reality check on my "income projection spreadsheet" :

(all numbers made up)

if my starting capital is $xxx,
and my weekly minimum credit is $3,
and i open only x contracts per week, (ie reduce size)
and i BTC after 70%,
and every 3rd week is a bad week, (ie macros again)
and i have to roll on bad weeks,
and the income of a bad week is only 50% of a normal week,
and i have 2 bad weeks in a row every 2 months,
and every 4th week i need to withdraw $x for living expenses,
then by yearend, the projected total income is $x,
and the new capital for next year is $xxx.

End result is a daily dashboard that shows lowball (but realistic?) estimate of what i think Dec 31 is projected to look like. Every week that passed, actual values replace projected values. The vision board becomes more and more accurate the closer i get to yearend.

The projection exercise also helps see if i can reduce risk. If i change weekly minimum credit to $2 (instead of $3) and the projected yearend income still looks good, then maybe $2 is good enough (ie it's farther OTM).

 

[samppa]

wuuhuu.. closed my -p286.67 for 7 cents/contract just 1 hour before close. These would have ended up ITM after close

 

[Yoona]

does anyone know why the huge 2x discrepancy on the ATM prems between c and p? is this issue temporary?

i recall they were almost the same pre-split, such that "buy-write vs. sell -p" was a difficult choice

 

[mongo]

does anyone know why the huge 2x discrepancy on the ATM prems between c and p? is this issue temporary?

i recall they were almost the same pre-split, such that "buy-write vs. sell -p" was a difficult choice

View attachment 845814

It closed around 288 (market hours), at that strike they have equal value. You have 283 highlighted (after hours finish which does not impact options pricing).

 

[Yoona]

It closed around 288 (market hours), at that strike they have equal value. You have 283 highlighted (after hours finish which does not impact options pricing).

oh ooooooopsies
thanks!

 

[JustMe]

Yo I’m wearing out the 3 on my calculator

 

[DaBooster]

I had to double look at the commission fee line today as I placed my 260/200 BPS for next week. The premium seems lower but the commission balloon 3x. As things stand I'll be paying $150-$200 or so a week which is substantial vs the income I receive. Here are few things that ran in my mind besides switching brokerage firms. I will try to let options expire at end of the week as I rarely use more than 1/2 the margins available. I can move a few strikes closer to ATM for better premiums. I sent a request to have my option fees reviewed at Schwab.

Would appreciate what others are thinking now that we get 1/3 less premium and need to 3x the quantity.

All would be solved if Tesla trades at 700-800 range again

I use Tastyworks for options, as you know one only pays to get in & $0 to closeout a trade.