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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
OK, I decided to help you all out again as things are going nowhere: STO 40x -c197.5 -> a sure fire way to get the SP back above 200!
Rationale is that I have 20x -p200's, and MP being 195, put wall 195, call wall 200, so seems a reasonable bet that could neutralise my losses from those puts
As I closed out all of my short calls earlier today, no problem roll these out to July if it reverses...
(did start climbing after I sold, but not like last week... sorry!!)
Rationale is that I have 20x -p200's, and MP being 195, put wall 195, call wall 200, so seems a reasonable bet that could neutralise my losses from those puts
As I closed out all of my short calls earlier today, no problem roll these out to July if it reverses...
(did start climbing after I sold, but not like last week... sorry!!)
Sometimes it pays to wake up late!! had some 3/31 -205cc that I rolled to this week's -205cc. just rolled them (at a 4:1 ratio) to a few -195p (this week's max-pain) for a credit. Considering next week's max pain is also 195, my gut feel says we'll just stagnate around here until Thursday.
myt-e-s-l-a
Member
In most cases, directional risk using naked puts on TSLA using secured cash. Its different than the weeklies and less profitable.
I will sell OTM Puts in the first 30 mins of trading on Fridays with a stop loss and let it expire. P/L can be $100-500 depending on size, risk and theta. im still experimenting...
Ah, I kind of assumed you were doing it on SPY as they have daily expiries...
I sued to scalp some beer money on Fridays, but it takes a lot of attention and energy for the return. What I have found suite interesting is writing monthlies and trading in/out of those, also LEAPS, there's no time stress and you play the Vega rather than the Theta
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Oh no, get the frown out 
, opened 4/6 -p182.5/+p177.5 for .50 an hour before I could have opened for .60 , lol. I have 4/6 -p160/+p130 spread rolled to this week a month ago that I'm confident will expire. Bought shares Friday, so have two more contracts I can write CC against. Will probably roll 4/6 -c190 Tuesday to next week; I doubt those will expire.
, opened 4/6 -p182.5/+p177.5 for .50 an hour before I could have opened for .60 , lol. I have 4/6 -p160/+p130 spread rolled to this week a month ago that I'm confident will expire. Bought shares Friday, so have two more contracts I can write CC against. Will probably roll 4/6 -c190 Tuesday to next week; I doubt those will expire.
Agreed, I think hedges got hammered last week and they want their pound of flesh back...
My ideal close now for the week is $197.49
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SpaceXaddict
Member
No but you always can see on MaxPain what EOD OI is and there is no after hours or premarket option trading
Does Max Pain work for TSLA?
Years ago I was trading Apple Options and Max Pain calculations (which I did by hand with a spreadsheet, because you couldn't get options data back then) was a hugely reliable indicator.
Do any of you use this in positioning the strikes when you sell options?
I've been selling 30-50 DTE strangles, about 1SDE out... but having trouble managing it with the way TSLA trades. (short strangles is a new strategy for me and TSLA is a new stock for me. I have a large (for me) Buy and Hold position in TSLA.
EVNow
Well-Known Member
I don't sell anything longer than 1 week out. TSLA is too volatile for longer DTE.
I sells CCs on spikes way out at prices that I am OK with selling - high 300s to mid 400s out until EOY or March of next year. Has been working great with the price action we have had lately. Still, need to figure out my exit points. Have a bunch right now where I am up 20 to 40% and not quite sure what to do with them....
I have played with this and noticed far out contracts (September 2023 and on) move very slowly in reaction to share price changes, have you seen differently?
SpeedyEddy
Active Member
but turned out to be correct in the end
so maybe the rest too
(My guess for TSLA would be intermediately lower today, tomorrow or wednesday, is still possible, picking up a bit of speed on thursday),
As always: Weird things that Macro move not included!!
I’m trying to understand implications of +Gamma Walls/-Gamma Magnets. I assembled the below
based on some of Yoona’s tweets and elsewhere. For those that understand this, can you pls take a look and let me know if this is an accurate description:
+Gamma Walls
If the stock price starts selling-off/falling, dealers may slow SELLING so we don't reach the bottom wall.
If the stock price rises toward the upper wall, dealers may slow BUYING so we don't reach it.
Example:
Stock is $200 and -Gamma Magnets are $195/$205:
If the stock price drops below $200, dealers may slow SELLING to avoid reaching the $195 magnet below.
If the stock price rises above $200, dealers may slow BUYING so we don't reach $205.
-Gamma Magnets
If the stock price falls from above, dealers may start SELLING so we reach the lower target faster.
If the stock price rises, dealers may start BUYING so we reach the upper target faster.
Example:
Stock is $200 and -Gamma Magnets are $195/$200:
If the stock price falls below $200, dealers may start SELLING so we reach the $195 magnet faster.
If the stock price rises above $200, dealers may start BUYING so we reach the $205 magnet faster
Corrections welcome.
Thanks in advance!
based on some of Yoona’s tweets and elsewhere. For those that understand this, can you pls take a look and let me know if this is an accurate description:
+Gamma Walls
If the stock price starts selling-off/falling, dealers may slow SELLING so we don't reach the bottom wall.
If the stock price rises toward the upper wall, dealers may slow BUYING so we don't reach it.
Example:
Stock is $200 and -Gamma Magnets are $195/$205:
If the stock price drops below $200, dealers may slow SELLING to avoid reaching the $195 magnet below.
If the stock price rises above $200, dealers may slow BUYING so we don't reach $205.
-Gamma Magnets
If the stock price falls from above, dealers may start SELLING so we reach the lower target faster.
If the stock price rises, dealers may start BUYING so we reach the upper target faster.
Example:
Stock is $200 and -Gamma Magnets are $195/$200:
If the stock price falls below $200, dealers may start SELLING so we reach the $195 magnet faster.
If the stock price rises above $200, dealers may start BUYING so we reach the $205 magnet faster
Corrections welcome.
Thanks in advance!
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Your examples are confusing because both reference -gamma magnets
Oops correct! The first example should read +Gamma Walls
Other than that can you share what you know about them?
Your examples are confusing because both reference - gamma magnets
sorry still confused, your second example has two different numbers for the -gamma magnet.. maybe you could try again but in short I have seen Yoona explain that -gamma attracts, and +gamma repels.. but I am not a gamma expert so cannot verify
Correct again, thanks for catching that too. Second example should be $195 not $205 (in my laziness I copied/pasted the first example to the second and tweaked it to match the context but missed the typo).
+Gamma Walls
If the stock price starts selling-off/falling, dealers may slow SELLING so we don't reach the bottom wall. If the stock price rises toward the upper wall, dealers may slow BUYING so we don't reach it.
[Example: Stock is $200 and -Gamma Magnets are $195/$205]
If the stock price drops below $200, dealers may slow SELLING to avoid reaching the $195 magnet below.
If the stock price rises above $200, dealers may slow BUYING so we don't reach $205.
-Gamma Magnets
If the stock price falls from above, dealers may start SELLING so we reach the lower target faster.
If the stock price rises, dealers may start BUYING so we reach the upper target faster.
[Example: Stock is $200 and -Gamma Magnets are $195/$200]
If the stock price falls below $200, dealers may start SELLING so we reach the $195 magnet faster.
If the stock price rises above $200, dealers may start BUYING so we reach the $195 magnet faster.
KTC Lurker
Member
So weighting (volume) of buys/sells at the strikes of the magnets and walls will determine direction?
First off, my expectation was we'd pop first thing on Monday, due to critical indicators flipping to bullish prior to the release. Honestly, I thought 422k was pretty decent and didn't expect to open red. Maybe it's the delayed effect of the model 3 not getting the full IRA credit spilling over once P&D is out of the way and there's no more event risk for the bears. I thought maybe we follow the blue path with P&D in the 440k (very low prob), the red path with P&D largely in line but ER is spectacular (low prob), the yellow path with P&D in line and ER is just ok (mid prob) or the purple path with P&D in line and ER misses (low prob). The blue and red paths would confirm the white ABC correction was it and 164 was the bottom. The yellow and purple paths would mean there are still headwinds that Tesla needs to navigate before we say goodbye to this 160-200 range for good.
Checkout the 0.9 fib level at 209.02. Since I count wave 5 to be complete at 214 instead of 217 (wave 4 and 5 don't usually go in a V-shape fashion 214 - 190 - 217 like what happened after 214), the 0.9 fib level is now at 209. From 213 - 164, the stock took the form of an ABC expanded flat. This is a confusing structure as it can be interpreted as either a complete correction or just the first leg of a bigger flat correction. Once the first leg has completed, the retracement would need to reach at a minimum the 0.9 fib level. It reached 207.78 on Friday, so pretty much satisfied that requirement.
This shows hesitation from both bulls and bears. Bears took their foot off the gas even before the stock reached 160 while bulls are not willing to commit to higher prices than 208 based on this P&D report.
If 164 was the end of wave 2 and the beginning of wave 3, then we have a problem. Wave 3 is supposed to be the most impulsive wave. Price action from 164 to now has been pretty back and forth and all gaps have been filled - EXCEPT TODAY'S OPENING GAP. Not impulsive. So I have to default to my base count which is we will go down once more after ER. If the dream is to be kept, today's opening gap has to be filled in an impulsive manner, preferably within 2 days. If not, this will look extremely enticing to bears. Of course ER can change everything, but I'd like to remind everybody that there are limits to what magic Tesla can perform with its operating excellence. We have seen Elon getting frustrated with higher rates and S&X not selling well. Keep in mind the first estimate of the US Q1 GDP will come out at the end of April. If the economy shows signs of slowing down, auto will be one of the hardest hit sectors. I don't expect much worse than 164 even if SPY does go down significantly from here, simply because flat corrections are often sideway. However, we all know Tesla has a tendency to be showered with bad news during hard times. Be careful out there folks. It should be contained up to the ER release. I'm still selling 175P exp. 4/14. After that, anything goes really.
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SpeedyEddy
Active Member
I see signs of WS slowly seeing what really is happening, maybe thanks to James Stephenson for picturing brightly where rolling 12 months is pointing to, which indicator I mentioned yesterday too. best ever 1st quarter. Lars Strandridder yesterday‘s video pointing out a few fundamental points overseen bij WS too. so my $ are placed on a huge recovery today today to close above Friday’s maybe even and maybe the former green line is still intact then. Thanks for the update @dl003 !
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