Wiki Selling TSLA Options - Be the House

[Yoona]

this means low chance of EM selling more TSLA shares after earnings, amiright? does anyone know?

"
They said Musk’s financial backers “have indicated that they are prepared to honor their commitments” and are working to close the deal by Oct. 28.
"

Judge delays Twitter trial, gives Musk time to seal buyout

A judge has delayed a looming trial between Twitter and Elon Musk. The move gives the Tesla CEO more time to close his $44 billion deal to buy the social media company after months spent fighting to get out of it.

apnews.com

 

[traxila]

What are you guys doing with the exercised puts? Mine were not cash secured so now I have margin debt. I need to stock around $310-300 to clear out the shares at break even. Is it wise just to sell the recently assigned shares and open again the puts with a longer expiration?

I always roll them for credit to make sure there is enough time value not to exercise. Yeah a lot of them are in 2023 now, but the way I look at it, I got a roadmap into 2025. And as time passes….

Now that you have them there are issues with margin. Don’t know how much it is, but if you still have cushions I would play go with aggressive wheel. Max Plaid can show you the way.

NOT AN ADVICE.

Went overboard when we were in the thousands. Figured a 10 percent drop was good time to sell some puts. Put me in a real bind when we went to 600s something I thought I was disciplined enough to avoid. So have been rolling since January. Had to close some out at losses to clear some margin.

I am content to carry the remaining ad infinitum as I believe TSLA will go to ATH after FED shows dovishness. Late next year?

Maybe this does not work for you if you are looking for income every week, but I have made money and improved strike on basically every roll. I am lucky enough to have my investments segregated from my everyday living and other expenses.

 

[OrthoSurg]

What are you guys doing with the exercised puts? Mine were not cash secured so now I have margin debt. I need to stock around $310-300 to clear out the shares at break even. Is it wise just to sell the recently assigned shares and open again the puts with a longer expiration?

Sold the 1500 shares at market open and sold 15 -p416.67 Jan/2024
The good news is now my average share cost is $225. I can sell my whole TSLA position without any tax event.

I got assigned 42 DTE with that contract in July and had to buy 500 shares at $1250

Then I got assigned 60 DTE 1 week ago and bought 1500 shares at $416.67

Now I am wondering if someone could do that on purpose. Let’s say your cost basis on 1000 shares is $50, you sell 10 puts with a strike price of $450 with 1 month expiration. You are assigned 1000 shares at $450, now having 2000 shares with an average cost of $250. Now you can start selling shares without tax hit? The problem we have with broker in Canada is that you can’t select the shares you want to sell so if you want to trim position you can’t juste select the last one you bought to avoir a big tax hit.

 

[Yoona]

Beware... there is VooDoo in the air!

Please take a few minutes and read the S&P upgrade letter... there are bread crumbs in there.
A number of people I have seen mention it, so I read it myself - the wording seems to imply a share buy back financed by bond sales, which could have been the catalyst for S&P to re-rate.

Again.... VooDoo, no confirmation, no cement... but feels really weird, especially with the Semi announcement tweet last night.

I am postulating that Elon wants a big pump to sell shares when the trading window opens and these are the ways to get it.

Still looking to open some Call spreads for little to no cash for November for this play, just trying to get the timing right.

Cheers.

another theory

EM to financiers: i need loan for my st*pid TWTR obsession

financiers to EM: no problem, funding secured but need TSLA to have a better investment grade as security/condition

EM to S&P: pls upgrade TSLA so i don't have to sell shares

S&P to EM: sure, but you need buyback so we get a piece of the action (bond business)

EM to S&P: where do i sign?

S&P to EM: we have a deal

financiers to EM: looks good... BTW, we also own S&P

 

[traxila]

Beware... there is VooDoo in the air!

Please take a few minutes and read the S&P upgrade letter... there are bread crumbs in there.
A number of people I have seen mention it, so I read it myself - the wording seems to imply a share buy back financed by bond sales, which could have been the catalyst for S&P to re-rate.

Again.... VooDoo, no confirmation, no cement... but feels really weird, especially with the Semi announcement tweet last night.

I am postulating that Elon wants a big pump to sell shares when the trading window opens and these are the ways to get it.

Still looking to open some Call spreads for little to no cash for November for this play, just trying to get the timing right.

Cheers.

Would hate to see that. Don’t feel Tesla should be taking on debt here at all. Cash flow is great, but macros….

The idea there is that TSLA will skyrocket so even 6% bonds are great deal to buy back stock. I would prefer simply announcing a 5B buyback and then also announce policy going forward that free cash flow resulthing in greater than 15B in the bank on a quarterly basis goes to buy back kitty.

Most of all I would prefer nothing of the sort. When we hit 50B we can start buying back then.

 

[UltradoomY]

another theory

EM to financiers: i need loan for my st*pid TWTR obsession

financiers to EM: no problem, funding secured but need TSLA to have a better investment grade as security/condition

EM to S&P: pls upgrade TSLA so i don't have to sell shares

S&P to EM: sure, but you need buyback so we get a piece of the action (bond business)

EM to S&P: where do i sign?

S&P to EM: we have a deal

financiers to EM: looks good... BTW, we also own S&P

Another very plausible theory... It's definitely something. Just feels extra weird.

 

[juanmedina]

I always roll them for credit to make sure there is enough time value not to exercise. Yeah a lot of them are in 2023 now, but the way I look at it, I got a roadmap into 2025. And as time passes….

Now that you have them there are issues with margin. Don’t know how much it is, but if you still have cushions I would play go with aggressive wheel. Max Plaid can show you the way.

NOT AN ADVICE.

Went overboard when we were in the thousands. Figured a 10 percent drop was good time to sell some puts. Put me in a real bind when we went to 600s something I thought I was disciplined enough to avoid. So have been rolling since January. Had to close some out at losses to clear some margin.

I am content to carry the remaining ad infinitum as I believe TSLA will go to ATH after FED shows dovishness. Late next year?

Maybe this does not work for you if you are looking for income every week, but I have made money and improved strike on basically every roll. I am lucky enough to have my investments segregated from my everyday living and other expenses.

The puts that I got assigned were Jun 24 666.7's. Looking at the Jan 25 option chain I will have to lower my strike a good amount to find something with decent extrinsic value. Is there a rule of thumb for how much extrinsic value is good enough to not get assignment? My margin excess is still ok but I would like to avoid paying interest. Hopefully the stock gets a little pump until earnings with all this semi delivery news and stock buy back rumors. I am also considering taking out a 401k loan which the max is only $50k in case things get really ugly.

another theory

EM to financiers: i need loan for my st*pid TWTR obsession

financiers to EM: no problem, funding secured but need TSLA to have a better investment grade as security/condition

EM to S&P: pls upgrade TSLA so i don't have to sell shares

S&P to EM: sure, but you need buyback so we get a piece of the action (bond business)

EM to S&P: where do i sign?

S&P to EM: we have a deal

financiers to EM: looks good... BTW, we also own S&P

this would be a double win for us, right?

 

[jeewee3000]

Converted some shares to JUN2024 $300c LEAPS today (Stock was at $231.00). 100 shares = more than 4 LEAPS. If stock were to double within the year, this would be very lucrative.

Not that I'm very bullish short term. But OTOH I don't expect us to drop another 30% from here. (Let's hope).

 

[BornToFly]

Some of my Dec 383 Puts were assigned last night. Sold the shares and sold the 263 long legs. Total loss = $105 out of possible $120.

 

[BornToFly]

I believe next Thursday is September inflation data? Maybe then Macro will take its foot off our necks, but I doubt it....

 

[OrthoSurg]

I was planning on selling CCs on the next pop for next week. Never happened this week.

 

[Yoona]

I was planning on selling CCs on the next pop for next week. Never happened this week.

yesterday - bought shares 240, at peak

today - sold BW 10/14 242.50, credit 3.10 (don't care if prems spike to Friday)

ok to lose the shares

 

[OrthoSurg]

yesterday - bought shares 240, at peak

today - sold BW 10/14 242.50, credit 3.10 (don't care if prems spike to Friday)

ok to lose the shares

My buy order of 60 shares at 230 just went through
I wonder if my buy orders of 120 shares at 215 and 240 shares at 200 will go through.

If we see in the 199s my eyes might start bleeding who knows

 

[Yoona]

My buy order of 60 shares at 230 just went through
I wonder if my buy orders of 120 shares at 215 and 240 shares at 200 will go through.

If we see in the 199s my eyes might start bleeding who knows

methinks 219-225 possible but hopefully don't

 

[ZenMan]

Bought Bull Call Spread. +250 -270 October 21 for $3.25.

I usually sell Calls but couldn't pass up this opportunity.

Wall Street firms are playing chicken with each other.

 

[bballshinobi]

Looks like I didn't have to close my $230 CC lol

 

[Knightshade]

Converted some shares to JUN2024 $300c LEAPS today (Stock was at $231.00). 100 shares = more than 4 LEAPS. If stock were to double within the year, this would be very lucrative.

Not that I'm very bullish short term. But OTOH I don't expect us to drop another 30% from here. (Let's hope).

Honestly been thinking about doing this with like 1000 or so shares I got in some of those early assignment puts... Even if we only get back to $300/share by say January when the highs seem to come in that'd be about 14k profit vs only about 7k holding per 100 share blocks

We'd have to stay under $300/sh through July '23 before shares were a better choice it seems

 

[BornToFly]

So I just figured out that I had a brain fart this morning (didn't sleep much last night). I was assigned 9 383 Puts = 900 shares. At the open I sold 9,000 shares instead of 900. I couldn't figure out why my total share number was off....

The good news is the SP dropped, so now I can buy them back cheaper. I'm glad I figured it out.

 

[Max Plaid]

Well, this is depressing and somewhat stomach-churning, but as I'm 65% $TSLA 25% cash and 10% LEAPS it could be worse... I'm well down on paper but in theory if I'm patient...

I have 10x -p240's expiring today, I decided to let them assign (strong assumption they will from here), and sold 10x -c240's against them for next week

I don't want the risk of any more puts being assigned, so I'm going to hold off selling those to create straddles, play The Wheel on the 240's. To make up the shortfall on my weekly target I have the choice to sell 100x DOTM CC's or 30x more aggressive CC's, I guess managing 30x going ITM is way better than 100x, so that's my likely route

And still 10x -p280's to deal with that I rolled to 10/21 - after earnings, these I will straddle with some calls to try and bring the strike down a bit, assuming they don't get early-assigned

What a mess!

 

[traxila]

JUST a little OT:

BTC up 3 percent over the past month.

QQQ down ten percent.

TSLA down 20 plus percent.

Why this matter?

I consider BTC to be the canary in the coal mine. It got nailed way before the overall market started getting trashed. All of a sudden it has decoupled to be more stable at 19 to 20K. Despite now mainstream conventional view that crypto was a ponzi disaster that is now gone forever with all the fools wiped out. Considered ultimate risk asset. The riskiest.

First one into correction and bear…. First one out? Of course, continued destruction of macros may hit it hard again, but for now it may still be serving as a prognosticator of the coming bottom (yes, there is a bottom somewhere. Maybe zero but still a bottom.).

CPI has ridiculous importance now even though six months from now will mean nothing. And this labor market number as a reason to destroy the market…. Ridiculous. The bears are firmly in control. For now.