You'd want to be sure the 2x150 have more extrinsic each than the 1x210, example. That's the time value that you'd want to avoid having shares put to you. I looked at this last week, I couldn't find a way to do it without laying out significantly more cash. Maybe I looked at it incorrect.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
EVNow
Well-Known Member
P210 Jan '25 is 105. P150 is 58.
Since the SP is 113, extrinsic are 8 for P210 and 19 for P150. In general, smaller ITM will have higher extrinsic for the same DTE.
Thanks much, I now recall why this wouldn't have worked for me. while the DITM can be bought back and the lower strike (x2) sold, there isn't a way to get back the loss of the DITM position. In my case, I'd give up 67K of the CSP to stay safe (177*6 contracts * 100 shares) which is significantly more than the credit I initially received to sell the position.
Deep thought:
This investment / option "education" that I received in the last year cost more than my private undergrad and grad schools tuitions all combined together.
Where is my degree?
This investment / option "education" that I received in the last year cost more than my private undergrad and grad schools tuitions all combined together.
Where is my degree?
BTW, folks, apologies for my vulgar post yesterday, which was subsequently deleted, I guess by Fred ggr (thanks you, sir!). Like many other I'm chronically stressed with recent events, and I'd also drank a considerable volume of strong beer... I know we're all adults here, with the exception od @ZeApelido, but it wasn't appropriate at all 
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I missed that yesterday. Do you care to re-type it? I need to go over it first before accepting your apologies.BTW, folks, apologies for my vulgar post yesterday, which was subsequently deleted, I guess by Fred (thanks you, sir!). Like many other I'm chronically stressed with recent events, and I'd also drank a considerable volume of strong beer... I know we're all adults here, with the exception od @ZeApelido, but it wasn't appropriate at all
Posted this in wrong thread yesterday.
An update from me - I've been out of the market and disengaged since rolling DITM BPS out to Jan '25 (115/135 and 150/175s). These positions are awaiting a rebound that brings them OTM. With 2 years to go I'm comfortable waiting. I have sufficient cash that these are fully cash backed. Still need a rebound in the share price, something that may or may not be coming, but with 2 years I like my odds.
I've been "buying" as the share price has come down in the form of trading in shares for Jan '25 200 strike leaps. I've got more shares that I have on the docket to do the same thing with. I'd rather not (due to the share price taking off upwards), but am thinking somewhere in the 90 to 100 range, trading into Jan '25 150 strike leaps.
Still not selling calls down at this price level - I've been bitten too badly on a sudden reversal and am waiting that out. Maybe I need to sell some calls just to bait the share price up!
In sum - all positions are fully owned (no margin), though there is a fair bit of leverage. Account value has been crushed, but I'm in a (semi) comfortable position to wait this out. I expect I'll be back to selling calls after earnings. I've also got some free cash that is likely to be put to work via BPS -- I was comfortable selling the 175s a month ago, and then the 135s. 100s or 90s have gotta be great!
As a result, with so few trades, there's been little for me to post about.
An update from me - I've been out of the market and disengaged since rolling DITM BPS out to Jan '25 (115/135 and 150/175s). These positions are awaiting a rebound that brings them OTM. With 2 years to go I'm comfortable waiting. I have sufficient cash that these are fully cash backed. Still need a rebound in the share price, something that may or may not be coming, but with 2 years I like my odds.
I've been "buying" as the share price has come down in the form of trading in shares for Jan '25 200 strike leaps. I've got more shares that I have on the docket to do the same thing with. I'd rather not (due to the share price taking off upwards), but am thinking somewhere in the 90 to 100 range, trading into Jan '25 150 strike leaps.
Still not selling calls down at this price level - I've been bitten too badly on a sudden reversal and am waiting that out. Maybe I need to sell some calls just to bait the share price up!
In sum - all positions are fully owned (no margin), though there is a fair bit of leverage. Account value has been crushed, but I'm in a (semi) comfortable position to wait this out. I expect I'll be back to selling calls after earnings. I've also got some free cash that is likely to be put to work via BPS -- I was comfortable selling the 175s a month ago, and then the 135s. 100s or 90s have gotta be great!
As a result, with so few trades, there's been little for me to post about.
Options volume (contracts > 500) is about even, 1:1 ... the 100p volume is concerning. Early to know or gauge, is the consensus close Friday 110-115?
BTW, folks, apologies for my vulgar post yesterday, which was subsequently deleted, I guess by Fred (thanks you, sir!). Like many other I'm chronically stressed with recent events, and I'd also drank a considerable volume of strong beer... I know we're all adults here, with the exception od @ZeApelido, but it wasn't appropriate at all
Oh it’s cool. I just thought you were practicing Festivus.
“I got a lot of problems with you people!”
EVNow
Well-Known Member
P100 could be because of a lot of protective puts. Yes, my guess us 110 to 115 closing this week. I've sold 87/92, 123/128 Iron Candor - sold put side yesterday and call side today.
dc_h
Active Member
I am intrigued by the idea. I have 120 (used to be leaps), expiring Feb 17. Could I roll them out and keep the 120 cost basis and sell some puts to keep the cost of rolling under control. The 120 calls were bought when covered calls are caught up in the Hertz irrational push up, so I've lost a lot and too stupid\stubborn to bail anywhere along the way. Looks like I could roll 2-17 calls to July 21 and sell 7-21 puts at 85 and break even. If Tesla goes to zero, I would lose $374,000. I can see us dipping to $85 before rebounding significantly. I'm not sure my margin will work to cover this trade, or come up with another leg to neutralize the margin on the puts. If Tesla hit $50 I'd be in very bad shape. Hard to imagine why, but hard to imagine why we are here. If I roll the 120 up to 130, I can bring the put down to 80, which is the final gap on the way down.
Need to sleep on this and write out all the possibilities.
EVNow
Well-Known Member
What happens if the SP goes to 200 ?
I opened an IC based on 1/6 -100/+95 BPS Tuesday and a 1/6 -120/+125 BCS today. Right or wrong, I tried to land the BCS staying delta neutral relative to the BPS. --> $1 total for $5K of margin at risk 3-4DTE <-- ... I'd like to see this one expire. Either way, I've learned my lesson; I'll close the worst side if things get out of hand.
Options volume today was about even, p/c ration near 1:1. The gamma exposure is looking good, slightly up, cluster edges tail at 105 and 125. If we could only find a way to crush all the FUD that I am trying hard to ignore.
Options volume today was about even, p/c ration near 1:1. The gamma exposure is looking good, slightly up, cluster edges tail at 105 and 125. If we could only find a way to crush all the FUD that I am trying hard to ignore.
I guess if you are selling CSPs, having them expire before earnings are announced is of value. But these are so far ITM, I guess I'm confused (as usual) as to the play. Clearly, they expect the SP to rise between now and then.
I don't really understand the idea behind some of these puts. I think the -300p -450p will likely get assigned in just a day or two, similar to what happened to many of us here? Why are they bullish?
Similar to the -233.33p 1/20/23. No way the stock price get there even after the ER. Im confused.
PS: never mind, majority of them are buy pull, not sell put.
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