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Social Chat - Short Term TSLA Movements
- Thread starter Jonathan Hewitt
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- TSLA
Close: June 300's -96,6%
I really knew about the IV countdown, I had hopes, but leasons learned the hard way :crying:
InTheShadows
Active Member
I hope that day comes before opex in June. I bought a lot of June options in feb and early march. Not only tsla but solars as well. Most of them have salvage worth right now. If they all expire worthless I will have more expiring in that day than the total value if my short and mid term options account right now.
My common account is ok, my leaps account is hurting pretty bad but there is still some time for those, though I'd like to see a rally before June so I can roll the j15's out to j16.
Solar business has been booming though. 3 sales, likely 4 this week alone.
InTheShadows
Active Member
Yeah, Same here. My only consolation is that the Detroit Auto gains still paid for a cash cushion and my bleeding LEAPS. Let us hope the Annual Meeting and first England deliveries coupled with ground breaking on Gigas float all our boats up.How many times?
That's most of my Detroit auto show gains right there.
Glad to hear that solar business is booming. Do you think it is just a hot streak or are you spotting better trends recently?
FredTMC
Model S VIN #4925
In that strategy that I outlined in the other thread. I would be selling some weekly (daily?) $210 options for $0.85 right now against my TSLA J16 LEAPS (or better yet shares). If TSLA closes below $210 tomorrow (more than 90% chance) then you keep the premium. If it goes up past that amount then you roll the calls forward to next week. You can then do the $215's for next week and still pocket an extra dollar on top of the 0.85 you earned.
The only downside to this strategy is that the stock can go up 15% and you miss out on the run. But TSLA has been going very strong for the past two days, so I see selling $210's for tomorrow as very small risk.
The only downside to this strategy is that the stock can go up 15% and you miss out on the run. But TSLA has been going very strong for the past two days, so I see selling $210's for tomorrow as very small risk.
I use his strategy as well to cushion the large long position held. Instead of trying to play the swings, leverage your long position against some safe call selling. It helps provide a dampening so you don't have bear(punn intended) the brunt of expected pullbacks. You don't have to sell as many calls as your long holding if unsure and still want participation in gains. Good strategy for those holding stock/LEAPS IMO
I'm guessing that you're "more than 90% chance" of TSLA closing below $210 is just an assumption right?
One thing I think I've learned is that trading options is really all about IV. It's not about catalysts or anything else like that. If there is a big event coming up such as ER, than IV will be really high and so making money off of options is much harder. For this first time my play for this ER was to sell calls and puts and it worked out well. Over the past week or so my guess was we're going to stay pretty flat and I wanted to sell some options but IV was just way to low so I stayed away. The right thing probably would have been to buy calls since they were so cheap. If I would have bought weekly $200's yesterday I'd be up at least 200% today. While we probably will stay below $210 tomorrow there is also a chance we won't
I'm guessing that you're "more than 90% chance" of TSLA closing below $210 is just an assumption right?
One thing I think I've learned is that trading options is really all about IV. It's not about catalysts or anything else like that. If there is a big event coming up such as ER, than IV will be really high and so making money off of options is much harder. For this first time my play for this ER was to sell calls and puts and it worked out well. Over the past week or so my guess was we're going to stay pretty flat and I wanted to sell some options but IV was just way to low so I stayed away. The right thing probably would have been to buy calls since they were so cheap. If I would have bought weekly $200's yesterday I'd be up at least 200% today. While we probably will stay below $210 tomorrow there is also a chance we won't
That's true, but if we don't the IV won't move much from the current anyway. But yeah the IV can really play havoc with those short term options. Good point
You can actually buy and sell volatility in a particular product as if it was a product all by itself. For example, to buy/sell volatility in TSLA you could sell a call option and buy the delta equivalent of shares for that contract at the same time.
I have done this strategy before, sometimes you get burned because of TSLA starts a major run....As for tomorrow, we are up 3% and the rest of the market even momo stocks are up slightly, so I think we pull back. Not so sure that I would place $ for a day trade.
Yeah that's true. And sometimes the IV is actually much easier to anticipate than the share price. Excellent point
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