Wiki Selling TSLA Options - Be the House

[thenewguy1979]

Thanks for the clarification on Fidelity guys. Now I know it was just my account. Perhaps it was small and there was a whole bunch of restriction.

So far been using Tradestation and have not missed a trade due to any restriction. Better for small dog like me I guess.

Happy weekend guys.

BTW - been using delta - condor - semi neutrals… let see how those trades go. Been using it on Tesla, Roku… with so far a 75+ percentile win. going try moving the trade out to 2-4 weeks to allow rolling of the leg. so far they have proven to be much safer plays then the directional longs.

 

[Jim Holder]

Reposting in case it got lost in the Ides of Friday:

If we are indeed entering a semi-bullish trend into December, what are some option plays some of you are thinking about in order to capture upside?
• +C250 1/5/2024 (30 days out)?
• +C LEAPS for more delta?
• -P220 1/5/24?
• Other ideas?

@tivoboy Are you still betting on 12/15 weakness sub-220?

 

[tivoboy]

Reposting in case it got lost in the Ides of Friday:

If we are indeed entering a semi-bullish trend into December, what are some option plays some of you are thinking about in order to capture upside?
• +C250 1/5/2024 (30 days out)?
• +C LEAPS for more delta?
• -P220 1/5/24?
• Other ideas?

@tivoboy Are you still betting on 12/15 weakness sub-220?

Still betting on weakness, but SUB 220 is uncertain. I’d still give it more than a 50% probability. i still think it’s possible. still holding, still writing calls still looking to add, still bearish in the near term though.

 

[Jim Holder]

Still betting on weakness, but SUB 220 is uncertain. I’d still give it more than a 50% probability. i still think it’s possible. still holding, still writing calls still looking to add, still bearish in the near term though.

What cadence are you expecting, pop this week to $245-250 then head down?

 

[tivoboy]

What cadence are you expecting, pop this week to $245-250 then head down?

I’m actually bearish on this week, but Macro FOMO could put upward pressure, but I won’t be surprised to see a $TSLA downward move early in the week.. remember, MP Friday 12/8 moved around a LOT, but is basically flat, following week is down 8%

 

[Jim Holder]

I’m actually bearish on this week, but Macro FOMO could put upward pressure, but I won’t be surprised to see a $TSLA downward move early in the week.. remember, MP Friday 12/8 moved around a LOT, but is basically flat, following week is down 8%

12/8 $247.50 increased into the close

 

[tivoboy]

12/8 $247.50 increased into the close

View attachment 995909

I guess updates don’t happen till pre market open

Stock Option Max Pain

maximum-pain.com

Options Max Pain - Calculations for SPY

Our Max Pain calculator displays the aggregate nominal value of options premium expiring at each strike price, for each expiration.

swaggystocks.com

 

[SAPharmD]

Still betting on weakness, but SUB 220 is uncertain. I’d still give it more than a 50% probability. i still think it’s possible. still holding, still writing calls still looking to add, still bearish in the near term though.

Next year still expecting 170-180s? Or has that changed?

 

[Oil4AsphaultOnly]

Reposting in case it got lost in the Ides of Friday:

If we are indeed entering a semi-bullish trend into December, what are some option plays some of you are thinking about in order to capture upside?
• +C250 1/5/2024 (30 days out)?
• +C LEAPS for more delta?
• -P220 1/5/24?
• Other ideas?

@tivoboy Are you still betting on 12/15 weakness sub-220?

I've a few ITM short puts (12/15 -240p, 01/19 -255p, and a Feb -260p) to capitalize on a bull run. They have enough theta to not worry about early exercises, yet should profit nicely on a bull run.

 

[thenewguy1979]

I've a few ITM short puts (12/15 -240p, 01/19 -255p, and a Feb -260p) to capitalize on a bull run. They have enough theta to not worry about early exercises, yet should profit nicely on a bull run.

How early is early for someone to excercise option? These are deep ITM so doggy mind is wondering….credit would be great but if someone exercise on this next week for say the one expire on 12-15…

Guess logically they should wait till expiration or the itm run deeper to recoup their expensive option?

 

[Oil4AsphaultOnly]

How early is early for someone to excercise option? These are deep ITM so doggy mind is wondering….credit would be great but if someone exercise on this next week for say the one expire on 12-15…

Guess logically they should wait till expiration or the itm run deeper to recoup their expensive option?

"Early" is anytime before the option expires, so it could be tomorrow or the day before expiration. But yes, as long as there's still a significant amount of time value remaining, you "should" be fine.

My contingency in the case of early exercise is to sell the shares immediately and resell the same option (or something similiar if trying to avoid a wash sale). The option holder who chooses to early exercise (as opposed to selling-to-close) is giving up the remaining extrinsic value. So it's unlikely to happen, but that's not a guarantee that it won't.

 

[thenewguy1979]

"Early" is anytime before the option expires, so it could be tomorrow or the day before expiration. But yes, as long as there's still a significant amount of time value remaining, you "should" be fine.

My contingency in the case of early exercise is to sell the shares immediately and resell the same option (or something similiar if trying to avoid a wash sale). The option holder who chooses to early exercise (as opposed to selling-to-close) is giving up the remaining extrinsic value. So it's unlikely to happen, but that's not a guarantee that it won't.

Im going to borrow this move but add a farther otm short legs to limit the risk. With the leg its almost 1:1 win loss $ amount better then doing call credit spread otm.

May couple with credit spread on the call side for full condor.

Edit: I would be wary of the dump when we bounce to 260-265.

 

[Oil4AsphaultOnly]

Im going to borrow this move but add a farther otm short legs to limit the risk. With the leg its almost 1:1 win loss $ amount better then doing call credit spread otm.

May couple with credit spread on the call side for full condor.

Edit: I would be wary of the dump when we bounce to 260-265.

Oh! I have a plan for that as well! If those puts become OTM early (way before expiration date), and you think it'll retrace, then roll them down and out to a later expiration for a slight profit. If the retracement happens and the SP looks to rise again, roll them back (earlier expiration) and UP to being ITM again. It might mean never getting to close the option, but as long as you're collecting premiums with each roll, it's still a profit.

Just remember to keep margin available, because there will be days where the stock drops further than you expected and that's where this strategy will hurt.

 

[thenewguy1979]

Oh! I have a plan for that as well! If those puts become OTM early (way before expiration date), and you think it'll retrace, then roll them down and out to a later expiration for a slight profit. If the retracement happens and the SP looks to rise again, roll them back (earlier expiration) and UP to being ITM again. It might mean never getting to close the option, but as long as you're collecting premiums with each roll, it's still a profit.

Just remember to keep margin available, because there will be days where the stock drops further than you expected and that's where this strategy will hurt.

Those short sales legs for me make these defined known lost so even if the market dump or pump beyond expectation I wont get margin call since coming in I know max lost and my broker usually pull those from my account already. They dont trust small dog like me.

One benefit of a spread vs a single legged short.

 

[SpeedyEddy]

Reposting in case it got lost in the Ides of Friday:

If we are indeed entering a semi-bullish trend into December, what are some option plays some of you are thinking about in order to capture upside?
• +C250 1/5/2024 (30 days out)?
• +C LEAPS for more delta?
• -P220 1/5/24?
• Other ideas?

@tivoboy Are you still betting on 12/15 weakness sub-220?

Just wait a few days (but you know already why that is my advce but the most important is: ) do not go against the SP direction that this week is going to be pointing, whichever it is. you might likely regret going against the grain a week later, in fact only far OTM same week could be safe.

 

[SpeedyEddy]

"Early" is anytime before the option expires, so it could be tomorrow or the day before expiration. But yes, as long as there's still a significant amount of time value remaining, you "should" be fine.

My contingency in the case of early exercise is to sell the shares immediately and resell the same option (or something similiar if trying to avoid a wash sale). The option holder who chooses to early exercise (as opposed to selling-to-close) is giving up the remaining extrinsic value. So it's unlikely to happen, but that's not a guarantee that it won't.

I Go the same way with a very few -P I wrote into the close after confirming (Dl003’s called) divergence. On a crash I could get caught, but I really do not expect that and then can roll down and out before assignment most likely. But I will be on close watch Monday and Tuesday, to swap into -C on a bearish turn.

 

[Jim Holder]

QTA Levels for today

12/8

12/15

 

[Max Plaid]

Bullish, eh? Santa Rally, right...

In play this week: 100x -c260 @$4.20, 30x -p240 @$9.35, 60x -c240 @$4.20

 

[ZenMan]

Sold Dec 8 -240 puts this morning at $8.10. Used proceeds to Buy Jan 5 +270 calls at $3.40

 

[intelligator]

I checked this data in two separate sheets, seems odd that positions closed, nothing net-new... take it with large grains of sea-salt.