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Social Chat - Short Term TSLA Movements
- Thread starter Jonathan Hewitt
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Oh, you wanted to make money? Here's what you do: stop shorting, hold your shares long, and check back in a year. Can't imagine how anyone could make a profit paying the transaction fees on a 13 share scalp when the stock is only moving 0.5%.
i'm not against going long. I said on this forum that we will test $170s when tsla was in $240s-250s, i also said retest $200 when tsla was down in $180s, and I said $200s will be resistance going forward....
don't focus on my share count (i may have leftout a few 0s)... it's a public forum, i see no need to brag about share count.
MartinAustin
Active Member
I recall your prediction in November when the stock was $150. Everyone else was standing like a deer in headlights after the fall from $194, but you said it would fall to $120... you were pretty much bang on. I bought about half of what I've got at $117.50. So you have some props
I recall your prediction in November when the stock was $150. Everyone else was standing like a deer in headlights after the fall from $194, but you said it would fall to $120... you were pretty much bang on. I bought about half of what I've got at $117.50. So you have some props
U recalled wrong. I said, at the time, $200 retest 1st, then resistance & downward going forward,
green1
Active Member
To be fair, depending on the brokerage account and packaging he could be paying as low as $0.01 per share commission, so you can make a profit on some pretty small moves at that level, of course on 13 shares a small move is probably not worth your time, but some people think differently...
MartinAustin
Active Member
"I suspect we are gonna revisit the Goldman downgrade price around 120s" is what you said on November 5th, unless I am reading the forum page wrong.
Yep, next time the short trolls come out, that will be my buy signal. Let's see, if you had held on to your 13,000 shares (that is a few zeroes, right?), multiplied by $5, that's $65,000 you missed out on by selling yesterday instead of holding.
The Blue Owl
Endangerous Herbivore
Please, everyone, listen to this man.Okay guys, lets keep TSLA at $209.50, so that my short covered calls can expire worthless today
Then the rally can resume on Monday, so that I can sell new covered calls :wink:
I assume you sold 210s expiring today? I went big and sold 210s for next week. Fat and juicy. I'm betting I'll have a chance to buy them back today and keep some of that juice for myself.
I feel dirty for shorting, but as I said before, I'm a selfish bastard.
I don't consider that shorting. Selling covered calls is a brilliant strategy that tends to perform just as well as holding naked stock in up markets, but significantly outperforms in flat or down markets. It is a winning strategy, as long as you don't get caught selling calls right before a 20%-50% move. But even then, that loss will be more than offset over time with gains from selling covered calls.
edit: yes, I sold the $210's expiring today for a little over $1/piece yesterday.
The Blue Owl
Endangerous Herbivore
It's not shorting, of course, in the sense that it doesn't involve selling anything that doesn't already exist. It's just the idea that, as soon as I sell the calls, I am putting dirty thoughts in my mind. I sold ATM calls, so whenever it goes higher, I am mumbling "you make me sick" at the TSLA ticker.
I shudder.
Anyway, usually I sell them $10-$15 out, but today I thought it wouldn't jump much from here. In the absence of any news we're floating with NASDAQ, and I'm expecting lower levels today, at least for a time, after the initial gap up due to the job report.
Chickenlittle
Banned
You don't have to be shorting stock to sell calls. Example: needed to replace cash in Ira to reflect a withdrawal and like to keep 30% cash in Ira. Didn't want to sell at 178 so I sold calls for 190. Knew they would be called away but got 5 dollar price so instead of sell those at 178, got 195. Yes it is less than I would have gotten if sold today instead but my decision at the time was to sell at 178 or sell the calls
The Blue Owl
Endangerous Herbivore
I'm not shorting stock, I am long stock and selling covered calls. The terms of my account don't allow me to sell naked calls (not that I would, anyway.)
Good call(s) on your trade!
Okay guys, lets keep TSLA at $209.50, so that my short covered calls can expire worthless today
Then the rally can resume on Monday, so that I can sell new covered calls :wink:
Wow, you really go tight with them. But who am I to judge, I learned about this technique from one of your posts, checked into it, and using it for the past three months. I tend to go much safer: sold 215 yesterday with expiration today. The premium is smaller, but I sell a lot of them... :smile:
This week is my eleventh of doing this. Works like a charm, pays much more than my day job!
Thank you, Sleepy!
NuclearPowered
Member
So you must be holding a fair bit of shares or long dated calls to cover the short call position?
I have been selling call spreads in TSLA for a while, essentially the same thing that you all are doing now. It's great when it works, but the time that it doesnt work and you dont close the short call, you are going to get hosed. I was targeting spreads for at least 10% upside to max downside risk and it worked for many trades and then you get the 1 or 2 that don't and its tough to stomach, especially when you are selling a lot of calls for low premium.
I hold both shares and September calls. Before I started doing this I've dropped more than a year worth of historical TSLA data into a spreadsheet and did analysis of typical price movements on Fridays. This of course does not guarantee anything, but gives a good idea on how to choose the strike for the calls being sold.
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