Wiki Selling TSLA Options - Be the House

[Yoona]

I have not sold any calls yet.

i will decide tomorrow.

 

[euro2012]

I managed to sell several 805 cc for this Friday during the pop this AM as well. One of the few times I sell at a peak, lol. I wanted to be past the call wall at 800, but if @bkp_duke is correct, I may look at rolling down Thu or Fri, depending on where prices are at.

 

[ReddyLeaf]

I have not sold any calls yet.

Same here. Wish I had timed it like @euro2012. Perfect call pick and timing. Edit, alas, I slept in and missed the early action.

 

[LN1_Casey]

Same here. Wish I had timed it like @euro2012. Perfect call pick and timing. Edit, alas, I slept in and missed the early action.

Tell me about it. The Market opens at my 3AM now.

 

[jeewee3000]

Not seeking advice, just opinions by people with more experience than me selling CC.

When sold CC's , close to expiration, have become almost worthless (<10% of selling price), do you:
A) buy them back, securing a profit;
B) roll them down, increasing potential profit;
C) let them expire to balance staying safe and maximizing profit on that specific CC.

In my case: I sold APR23 900c last week (and posted about it here) and that has worked out very well so far.

This week (yesterday at open) I sold APR23 830c which are <40% of what I sold them for.

I'm thinking of rolling down my 900c to 830c (same expiration) to squeeze out a little extra profit, but might as well let them all expire.

Thanks in advance for your point of view. I take full responsability for my actions etc etc.

 

[redan]

I think it depends on the week, how the stock is trending, and how aggressive you were initially. Last week I sold $900 and $855, then rolled them down to $805 and then on Friday, rolled half down to $755. I was sweating for a bit as the stock price zoomed to almost $750. I was able to grab an extra $1200 net in premiums for the final roll-down, but if my shares had been called or I was forced to roll into this week, that last $1200 wouldn't have been worth it.

This week I sold 40 x $805 for $1.95. They were already down over $1 in my favor by close yesterday and I fought the urge to close them expecting we'll pop at some point this week. But based on pre-market, I'm glad I held them open. Will probably take some action today - either close or roll down, depending on what happens today. There won't be much premium left to gain with your $900, I'd probably look to roll them down to at least your $830 if not lower.

 

[Chenkers]

If the sold Call or Put is just comfortably OTM I will buy to close with a target price of less than 5% of the intial premium (but often .01 or .02). If the option is looking to be well OTM then I will roll down to a closer (but still comfortable) strike on the same expiry for more premium. I generally don't let any options expire and only roll if they're well ITM.

 

[sub]

Not seeking advice, just opinions by people with more experience than me selling CC.

When sold CC's , close to expiration, have become almost worthless (<10% of selling price), do you:
A) buy them back, securing a profit;
B) roll them down, increasing potential profit;
C) let them expire to balance staying safe and maximizing profit on that specific CC.

In my case: I sold APR23 900c last week (and posted about it here) and that has worked out very well so far.

This week (yesterday at open) I sold APR23 830c which are <40% of what I sold them for.

I'm thinking of rolling down my 900c to 830c (same expiration) to squeeze out a little extra profit, but might as well let them all expire.

Thanks in advance for your point of view. I take full responsability for my actions etc etc.

excluding wanting to avoid earnings weeks or known catalysts, I look at the total theta of my position. When my short calls have dropped down under 1.00 value, I start looking to roll. This is part of why I mostly trade 2-3 weeks out options instead of weeklies, theta decay is more consistent and I think it's more profitable without having done the math.

 

[Yoona]

For Apr 23:

Sold IC +p670/-p675/-c800/+p805 (same as last week, why not)
Sold CC -c760 (i may regret this)
Sold Short Strangle -p690/-c800 (first time trying SS, because more profitable than the CC and IC)

 

[jeewee3000]

For Apr 23:

Sold CC -c760 (i may regret this)

In a 'normal' week I'd say you're fine, but I'm still expecting a pre-ER runup which IMO could easily run to $780.

That's why I closed my CC positions today with huge gains. If the stock rises greatly today or tomorrow I might sell some new CC's.

 

[Runarbt]

Sold a few $700 naked puts for this Friday.

With maximum pain at $720 and 30k puts contracts at 715-720, this felt like a opportunity.

Got paid $1500-1700 a contracts. Thats pretty nice this close to expiry. Theta 4-5 (!), thats rather high?

 

[jeewee3000]

Got paid $1500-1700 a contracts. Thats pretty nice this close to expiry.

IMO it's mainly because the day's low is already below your $700 strike price, i.e. your puts could likely end up ITM.

Good luck though, I think $700 will hold. (but I'm not putting my money where my mouth is on that one )

 

[redan]

That's why I closed my CC positions today with huge gains. If the stock rises greatly today or tomorrow I might sell some new CC's.

Same. I’ve been watching it all day and once it looked like stock price was going to start moving and not retrace, I closed my 40 x $805 calls (STO at $1.95 and BTC at $.39) and may look to resell assuming we get a sustained pop. I’ve been expecting one all week.

 

[Runarbt]

IMO it's mainly because the day's low is already below your $700 strike price, i.e. your puts could likely end up ITM.

Good luck though, I think $700 will hold. (but I'm not putting my money where my mouth is on that one )

I’d be very surprised.. when the crash didnt do, I really cant imagine what would make the sp close week below 700 with such a large a open put interest above, and with ER is Monday.

 

[Criscmt]

Sold 04/23 785C in IRA for ~1.50.

 

[juanmedina]

OMFG, what have I done

Too soon junior lol. I sold 770s 780s 790s when the stock was around $728 for this Friday and a few $805 CC's for 4/30 . Great timing as usual lol.

 

[jeewee3000]

Too soon junior lol. I sold 770s 780s 790s when the stock was around $728 for this Friday and a few $805 CC's for 4/30 . Great timing as usual lol.

At what point do you roll up and/or out? (How close to the strike price?)

 

[juanmedina]

At what point do you roll up and/or out? (How close to the strike price?)

I actually never really had to roll a call but I have been close. I wait until late Thursday until most of the time value has decayed to close out the trade or Friday if this are looking good; but like I said I never had one finish ITM. Once the call gets ITM is really hard to roll them out near term at a higher strike for a small credit. I usually sell covered calls at 25-20% from the SP on Monday but as the days go by I start to get more aggressive and try to split the trades between days. I got too much FOMO today. You might leave decent money on the table with the way I sell calls.

 

[redan]

I closed my 40 x $805 calls (STO at $1.95 and BTC at $.39) and may look to resell assuming we get a sustained pop. I’ve been expecting one all week.

Well, we got the pop I was expecting but I was too chicken to jump back in. Decided to wait until morning and see what direction we're taking. I don't have the guts that others (e.g., @Lycanthrope, @bkp_duke) have for really aggressive CCs, but instead like to pick and choose my spots and hide behind big call walls, when possible. On the other hand, I have more guts on the sold put side and my 6 X $710 -P from Monday responded really well to today's price action.

 

[bkp_duke]

I'm comfortable being pretty aggressive right now because the bulk of my trades are in non-taxed accounts (Roth IRA, Solo401k, etc.). If the calls execute then I can just take the proceeds, watch for a MMD at the right time, and get back in.

Goal this year is to, over time, sell enough premiums to increase my TSLA share count by 25%.