TSLA Trading Strategies

[D-egg-O]

Could that be partly due to the seasonality chart where TSLA has yet to close higher in October?

 

[kenliles]

Could that be partly due to the seasonality chart where TSLA has yet to close higher in October?

Slightly yes, though it's largely due to the tight range trading range and lower SP volatilities - [also seen across the S&P so TSLA tracking that as well]. IV is a complicated factor- but it tries to measure where the market expects volatility to be looking forward. The simplest large factor is SP over past days and expected looking forward- but for example even the anticipated interest rate for 'risk free' alternative is a factor in it's calculation (rates have been stable and wobbling recently) - another reason for people to allocate some energy in tracking Bond market and rates for even equity investment- especially options. It's not a big factor for long term LEAPS - but if monitoring for best opportunities for trading LEAPS, it helps to anticipate where IV will be based on where it's been. Currently they are lowish but could still come down some. On balance- This was probably a good time for you to add [from this IV perspective].

 

[MitchJi]

Purchased another jan19 600C. The premium seemed to have dropped recently with the stagnating SP.

My nose is bleeding .

 

[kenliles]

My nose is bleeding .

I have some J19 $500 in a trading layer.
There’s a caveat emptor for every purchase -
Tilting of head required

 

[AlMc]

My nose is bleeding .

I have some J19 $500 in a trading layer.
There’s a caveat emptor for every purchase -
Tilting of head required

I bought a few J19 600s as a lotto play with speculative money. But my brain is old and I get confused easily.

Holding some cash for J20s. If the SP runs up and away from me...oh well.

 

[EinSV]

Well as long as everyone is confessing their sins, I joined the J19 600 club in a small way on Monday morning too. I don't recommend it.

 

[kenliles]

Well as long as everyone is confessing their sins, I joined the J19 600 club in a small way on Monday morning too. I don't recommend it.

Gives new meaning to the sin confession
Mile High Club

 

[EinSV]

Gives new meaning to the sin confession
Mile High Club

That sort of thing is “against my religion” so, yes, sin confession.

 

[D-egg-O]

I just rolled over some ITM covered calls from 10/27 to 11/03 at a premium of $4.80 per contract. I even bumped up the strike price. Gotta love earnings week.

 

[MitchJi]

June 15, 20018 expiration options are available on Monday.

They are listed now without prices on TD Ameritrade.

If you want to get a good idea of what the prices will be you can use the CBOE options price calculator:
Chicago Board Options Exchange - The World's Largest Options Exchange

 

[D-egg-O]

I'm considering selling some J19 600Cs in favor of some lower strike priced J19s (like 500 or 450). My thought is to capture more of the delta when the SP rebounds. Timing is obviously the big question. I know I'll have less number of contracts in the end with the lower strike priced J19s. Has anyone else done this? Thoughts?

 

[kenliles]

I'm considering selling some J19 600Cs in favor of some lower strike priced J19s (like 500 or 450). My thought is to capture more of the delta when the SP rebounds. Timing is obviously the big question. I know I'll have less number of contracts in the end with the lower strike priced J19s. Has anyone else done this? Thoughts?

Make sure you do the math on that. Assuming you’re going to trade the same capital, one for the other- establish entry and expected exit points.
Without considering 2nd order effects but just Delta, convert your 600s to total shares tracked over the hold time range. Then do the same for the lower strike (fewer contract total but higher delta per contract). Then account for some loss in the bid ask trade and you might find it’s not worth it.

 

[bdy0627]

I'm considering selling some J19 600Cs in favor of some lower strike priced J19s (like 500 or 450). My thought is to capture more of the delta when the SP rebounds. Timing is obviously the big question. I know I'll have less number of contracts in the end with the lower strike priced J19s. Has anyone else done this? Thoughts?

If it were me, I might convert a portion to April20 calls at $450 IF you feel confident in a rebound by then (I do). The price for those options is a little bit less than the J19 $600s. Here is the projected profit for a stock price of $380 and $420 on December 14 for various call options:

 

[kenliles]

If it were me, I might convert a portion to April20 calls at $450 IF you feel confident in a rebound by then (I do). The price for those options is a little bit less than the J19 $600s. Here is the projected profit for a stock price of $380 and $420 on December 14 for various call options:

View attachment 256705

Agree. If that really is a trading capital assignment as D-egg-O seems to imply, That would be a good alternative. Especially because the implication is he thinks there is a rise medium term to capture, it unsure of its long term continuance. That’s what I pictured as well

 

[D-egg-O]

Going to do the usual today. Sell a covered call(s). Buy protective put(s) with the proceeds.

 

[bdy0627]

Going to do the usual today. Sell a covered call(s). Buy protective put(s) with the proceeds.

Which puts are you buying?

 

[AlMc]

I am sitting tight with basket #3 Tesla cash in hand.

Disclaimer: I have been wrong as often as right on the SP into, during and a day or so after earnings

My prediction: SP gets beat up when the ER is released; EM saves it a little on the CC but ultimately we see my buying range which is sub $310. If we go sub $300 I will be buying a few J19s instead of stock and hold the rest for J20s.

end of today. $320; during ER. $305; during CC. $ 315; $300 by Friday close

 

[D-egg-O]

Which puts are you buying?

OTM. I bought one 11/10 270P yesterday. Will likely be something similar close to closing today.

 

[AlMc]

Well, I was going to 'stand pat' but I did sell my trading shares @324 to accumulate more cash. If the SP spikes and runs away from me I will still be happy with my core and LEAPS and redeploy elsewhere.

 

[D-egg-O]

Planning on trading protective puts for the next couple months. Sentiment seems to be the lowest in years. Hopefully able to add to my trading capital and add core shares or LEAPs.