thenewguy1979
"The" Dog
The force with this one too StrongThere you got it
exit out before dog's ballz get squeeze hard
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
exit out before dog's ballz get squeeze hard
Not enough absolute short interest for it to work for more than some $10.s for a day or two.
exited as planned.
I entered because the 1h candle looked ugly, but it ended up closing strong. Took out HOD. Reverting back to my original plan of waiting for the 1H to get expensive. Not gonna take long, maybe day / day and half.
I entered because the 1h candle looked ugly, but it ended up closing strong. Took out HOD. Reverting back to my original plan of waiting for the 1H to get expensive. Not gonna take long, maybe day / day and half.
I'm hoping the same people that shorted GME/AMC also shorted TSLA. Two for one type of deal. Many rumors that people are selling BTC to fund meme coins/stocks. Lets see how this plays out for Wall Street v2 and how TSLA may or may not be affected.
thenewguy1979
"The" Dog
But with leaps, you have to be sure that your gain is more than the extrinsic to even out the trade when you sell. If you paid $362 for +c620, you would not break even unless the SP is $982. Any -c you sell less than that will be at a loss if you let it go. If your intention is to wheel, I don't think you can get in/out of LEAPS as easy as straight shares.
Compared to most of what you are doing they are pretty straightforward. The challenge for me is just being able to visualize/analyze risk over time and stock price; it is a real 3D/4D problem when you hold them for a longer time and are down/at risk for some positions. It feels like differential equations vs linear algebra at times. The good news is that you simplify things by planning to hold close to expiration.
The other thing to be careful with is wash sale in selling the shares initially.
jeewee3000
Active Member
It really boggles my mind how fickle trader sentiment is, time and time again. (Or so one would believe if they read financial news sites. I'm more and more a fan of not checking the news at all, as you often suggest. I only check official Tesla sources, really.)
i think i understand LEAPS
what i don't get is management (when to roll, what to do when stock is up, what to do when stock is down, etc)
coz from what i've seen on this thread, ppl lose "everything" on LEAPS
whereas i can't lose anything on stock (just need to wait for sp to rise again)
perhaps i'll forget about it and stick with stocks to keep this simple
Perhaps this is just anecdotal, but everytime I've bought leaps, if I had just sold that leap short, I would have made money. So I've resorted now to whenever I the itch to buy a leap I just sell it short instead, as long as I have stock to cover it, I'm fine with the lower profit, especially since my leap is above my cost basis.
I am still bearish... but I understand today's movement. People figure with GPT4o being "so good" that Tesla's AI objectives might be possible. Maybe I am just emotionally bearish and positioned mostly bullish.
@Jim Holder on buying puts to insure for the shareholder meeting: remember that insurance is not an investment. I am trying to gauge the real risk of any of the big three items to the stock and/or company (I voted against all, but believe I am in the minority), and so far I think it is less than 10% chance of failing at least for Elon and Delaware.
The Delaware one specifically though I have trouble gauging. I cannot imagine how a fiduciary can approve it at a major fund, aside from Wood.
The more you trade them the more you lose; that is the benefit of holding. Theta is pretty low until about 90-180 days out. Delta is also proportionately lower so rolling isn't a huge priority.
Personally when I buy LEAPS the strikes are usually about half the stock price. So, a 10% drop in long term value is a 20% loss. I do them as a share substitute and to free up cash. I have some June and December LEAPS in TSLA that will be pretty big losses unless some magic happens, but I have covered them with other trading to the point that I look at it as sunk cash.
People losing everything are often buying FOTM calls that essentially are gambling. Also... selling LEAP Puts can be amazingly complicated to manage. I still do it occasionally but it is risky.
Hey, no cherry-picking
In the same update Wicked also said that if TSLA reclaims $173.99 and holds then the bearish scenario is reversed.
Everyone's trying their best.
Today has nothing to do with GPT, imo. As I was prepping the room for a few days straight last week, the 2H was getting cheap. Then on Friday I said it's cheap now, go light on CCs over the weekend. It's simply a pressure release mechanism. The meme stock basket also helped. We call this the pump season, where the big boys have nowhere else to go so money goes into the cheap meme names for a quick buck.
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