Wiki Selling TSLA Options - Be the House

[adiggs]

Though I haven't yet closed, the 145/135 put spreads for next week that I sold yesterday, will be closing before end of trading today. They're ahead about 70% (.50 down to .15) over the 1 day and is pretty much exactly what I was hoping for today. Flat to slightly up would crush the value on those to my benefit.

I'll be looking at opening a replacement on Monday.

Proceeded with the close at .16. In .50, out .16 for 1 day. Decided I didn't want to watch the ticker any more today, not with trade timing on the line.

I used market orders on both legs to close these out. Bid/ask was .01 on both legs. The mid point was the same or 1 penny better - the market orders gave me functionally instant close on these relatively high volume and close enough to the money options, and I didn't need to worry about the prices running away from me. I either broke even or paid .01 for the benefits of the market close - totally worth it to me.

 

[Vova]

Choosing again the 200/220/240.

That means I buy 1 Call May 200 - USD 870

sell 2 Calls May 220 + USD 790

buy 1 Call 240 - USD 173

Investment USD 253 (transaction cost not included). Profit of USD 145 in my pocket as long as the stock price of Tesla doesn't exceed USD 220 till the 21st of April.

Made a profit of USD 145 on the Aprils but invested USD 253 in the May butterflies which are in loss. But I use the may butterfly as hedge for a June position.

I am buying a June 170 call and sell 2 June 185 calls. The 170 call I buy for USD 1120, the 185 call I sell for USD 570 each which makes USD 1140. USD 20 in plus.

Which gives me the following position:

1 Call June 170
-2 Call June 185
1 Call may 200
-2 Call may 220
1 Call may 240

Profit/loss:
+145
-253
+20

Investment USD 88.

 

[UltradoomY]

Just opened some collars for next week -

STO $170C
BTO $160P
Net Credit of $0.07 each
Let's see how this works out on Monday!

 

[SebastienBonny]

Sold 5/05 180 CC for 1.55.

 

[dl003]

Beautiful. Bottom should be made on Monday before a sharp reversal @ 156.

 

[Jim Holder]

Beautiful. Bottom should be made on Monday before a sharp reversal @ 156.

Nice! Sharp reversal irrespective of SPY and QQQ toppy formation?

 

[EVNow]

May be 165 is the new 185

Incredible. Close at 165.08 ?!

This options driven close price is kind of difficult to "believe" esp. given uptick rules. Will have to watch next week to see if we go below 160.

 

[MikeC]

Closed 165/167.50/170 CC opened yesterday for a nice week...if you ignore the huge losses on common stock. Also rolled out some 2024 LEAP calls to 12/2025. I let a -p170 assign today against shares I sold during the ER call.

I'm expecting a drop on Monday at open, so I opened a few +p160 for insurance. Holding 4/28 -p170 and -p180 that are rolls from this week. Holding 10x -c170 and 10x -c175 I sold yesterday.

 

[dl003]

Nice! Sharp reversal irrespective of SPY and QQQ toppy formation?

Topping doesn't mean soon to crash. Reversal off the low doesn't mean vshaping to new highs.

 

[Jim Holder]

Topping doesn't mean soon to crash. Reversal off the low doesn't mean vshaping to new highs.

What are you seeing for sharp reversal? Wondering if I should BTC any covered calls at $154 or wait for the next drill through that further after the reversal (is that what you’re expecting, reversal and then new lows after or $154 area is the bottom?).

 

[dl003]

What are you seeing for sharp reversal? Wondering if I should BTC any covered calls at $154 or wait for the next drill through that further after the reversal (is that what you’re expecting, reversal and then new lows after or $154 area is the bottom?).

When I say the bottom I really mean the bottom, hence I said a reversal to follow, not a DCB. I might be wrong but thats my only read atm.

 

[Jim Holder]

When I say the bottom I really mean the bottom, hence I said a reversal to follow, not a DCB. I might be wrong but thats my only read atm.

Amen!

Can you share with us how high the reversal might be?

 

[dl003]

The initial spike should fizzle out around 170 then well see whatll happen next.

 

[Jim Holder]

The initial spike should fizzle out around 170 then well see whatll happen next.

Thank you

 

[khill]

Beautiful. Bottom should be made on Monday before a sharp reversal @ 156.

Can you explain what you meant to say? Did you mean to say that you think it would go to 156 on Monday and then reverse from there?

 

[JustMe]

With this drop, my put side problems resurfaced. Both lots are Jan '25 expiry ... a 6x -p280 (CSP) that has about $7 left and a 10x -p240/+p180 spread with about $13 extrinsic. They were rolls to safety which has proved now to be more unsafe than ever.
Eating these wouldn't be pleasant, or would be to take assignment at those strikes. Any creative thoughts, I'm all ears.

I suggest going back to the drawing board on your account- on paper. This is a thought exercise. If you closed all of your options positions, what trades would you make now that offer the best risk/reward given the current market conditions and Tesla guidance.

 

[Vova]

With this drop, my put side problems resurfaced. Both lots are Jan '25 expiry ... a 6x -p280 (CSP) that has about $7 left and a 10x -p240/+p180 spread with about $13 extrinsic. They were rolls to safety which has proved now to be more unsafe than ever.
Eating these wouldn't be pleasant, or would be to take assignment at those strikes. Any creative thoughts, I'm all ears.

I have sended you a PM.

 

[Max Plaid]

The question I'm asking myself over the weekend is what will make $TSLA go up again or perhaps just stop it dropping. Very strong negative sentiment right now, and although the markets have generally been bullish the last weeks, especially tech, we likely have some crappy earnings incoming and lots of recession talk. It all feels very grim

FOMC and rates decision on 3rd May, CPI the week after that - these could pop the wider markets, but would them pull TSLA out of this funk? I'm not convinced...

Price rises, would that reverse things? Perhaps, but TBH it would also make Tesla look amateurish, they need to stop licking about IMO and stabilise things for a while

So then we're waiting for what, CyberTruck order page, surely that's due soon. Next P&D, will it even matter any more - Tesla could sell 500k, but the narrative is now all about margins, need to wait until earnings for that, and then what if they're worse and the EPS is lower...?

I'll be honest, I'm thinking very long and hard about selling some very aggressive calls and letting some shares go, even core shares, I struggle to see any light at the end of the tunnel right now and I'm an Uber-bull, so what are the neutrals feeling? Even if the stock reverses, I don't see it going up fast, would be plenty of opportunity to sell puts with the capital, but I fear it will drop more from here, maybe not plummet, but bleed down slowly

Best case I can think of right now is that mid-160's is the new pivot point

 

[Jim Holder]

The question I'm asking myself over the weekend is what will make $TSLA go up again or perhaps just stop it dropping. Very strong negative sentiment right now, and although the markets have generally been bullish the last weeks, especially tech, we likely have some crappy earnings incoming and lots of recession talk. It all feels very grim

FOMC and rates decision on 3rd May, CPI the week after that - these could pop the wider markets, but would them pull TSLA out of this funk? I'm not convinced...

Price rises, would that reverse things? Perhaps, but TBH it would also make Tesla look amateurish, they need to stop licking about IMO and stabilise things for a while

So then we're waiting for what, CyberTruck order page, surely that's due soon. Next P&D, will it even matter any more - Tesla could sell 500k, but the narrative is now all about margins, need to wait until earnings for that, and then what if they're worse and the EPS is lower...?

I'll be honest, I'm thinking very long and hard about selling some very aggressive calls and letting some shares go, even core shares, I struggle to see any light at the end of the tunnel right now and I'm an Uber-bull, so what are the neutrals feeling? Even if the stock reverses, I don't see it going up fast, would be plenty of opportunity to sell puts with the capital, but I fear it will drop more from here, maybe not plummet, but bleed down slowly

Best case I can think of right now is that mid-160's is the new pivot point

@dl003 indicates $154 due this week may likely be THE bottom and then sharp reversal to around $170. Perhaps TSLA will then range $165-185 for a couple months before rising again.

Seems like a good opportunity to meantime sell covered calls for income for shares over $190+ that are okay being called away, while we wait.

FWIW dealer delta price distribution shows bearish for TSLA this whole week and possibly longer. See the graph below, when deltas are green stock goes down and TSLA remains a short. Deltas are currently green and rising (see far right. White line is stock price in relation to deltas).

NFA

 

[Jim Holder]

https://twitter.com/x/status/1649820453748318208