Yes. In for 20x 5/12 -180c so far. Still holding 10x 5/12 -150c that I rolled yesterday at a $1.50 credit per share.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Yes. In for 20x 5/12 -180c so far. Still holding 10x 5/12 -150c that I rolled yesterday at a $1.50 credit per share.
EVNow
Well-Known Member
Looks like TSLA is trading its usual 2x based on Nasdaq up 2% - slightly better actually.
No news in particular (except for some small price increase of Model S/X to nudge people to buy now instead of waiting for price cuts, I guess). Could be some institutional buying.
ps : I've to say Nasdaq action is puzzling given the economy.
No news in particular (except for some small price increase of Model S/X to nudge people to buy now instead of waiting for price cuts, I guess). Could be some institutional buying.
ps : I've to say Nasdaq action is puzzling given the economy.
One thing for sure I found for me (relative noob) is that it takes a of emotional strength to believe in a dip during a bull run!
Learning to trust the charts and have more confidence, yet still quite scary averaging into -C’s at highs on days like today to lower avg cost so that when the dip comes I can BTC @ even or modest gains instead of losses.
dc_h
Active Member
I'd say the economy is pretty puzzling, considering the economy. Full employment recession? Banking crisis without loan losses. I'll be happy if we can keep rallying, slow and steady. I'm rolling a single 157.50 call to 160 for credit, 10 165 to 167.5 for credit and 167.5 to 170 for credit. I'll roll them up again next week, as needed and ok to sell over 180. I need cash for a project, so hopefully we have some legs here.
EVNow
Well-Known Member
At long last ... I got up a bit early and rolled my 5/5/ 180 calls to 5/12 180 calls. Bad day to do it early !
I am still holding my $170's.... The stock seems like it wants to break it.
I sold a few 5/5 -165c for ~$3 credit this morning!! Gambling that max pain takes things down a bit and take the profit. If I'm wrong, then I roll to next
So sell $172.5 calls for next week?
I closed my $170's; I got tired of starring at them. I opened a few $177.5 for $1.3-1.2. I have some $180 and $175 that I sold earlier in the week but the majority of our shares are free and will sell more calls next week.
Closed above the 170 level. Let's see what that's worth.
My position is gaining momentum. Still, June is far away but today's move give me more opportunities.
Position stays the same:
1 Call June 170
-2 Call June 185
1 Call may 200
-2 Call may 220
1 Call may 240
USD 88 invested.
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Interested in your Jun’24$300 cc — do you have historical trades you could share, or is this a new idea? What are you expecting with a relatively small $5 retrace?
I chose it since it’s above CB for some of my shares with a delta large enough that SP moves are meaningful. I don’t plan to hold it to expiration, just as a tool to capture gains on this and BTC on dips. But if SP gets out of hand and runs away from me, I wouldn't be hurt just letting it ride to expiration.
I started building the position yesterday late noon @$7.85 and averaged up to around $9.40 at todays highs. This allows the position to gain as we retest, the gains from $9.40 down will make up for the loss from $7.85 up.
I currently have 30x -C300 June ‘24, with a CB of $8.53 (had I not averaged up it would be $7.85).
Because the delta is 0.22, a retest Monday of $165 will bring the contract into green for +$976 gains vs. -$2,700 loss if I BTC today at close ($9.45).
Even just a retrace to $168 (-$985) is preferred to a -$2,700 loss.
I see now how much iron-nerves and confidence is needed to open a short position at major resistance (i.e., $172). The euphoria of the bull run fights the instinct, at least for me! Today specifically, because TSLA was so beaten down since Q1-23 earnings, and may run like from 102 and shoot right through the next resistance ($172-$176) as well.
But I trust the experts who’ve been doing this much longer than I that there will be a retest this coming week before the next leg up.
Meanwhile I kept my 30x -C180 and 60x -C182.50 for next Friday (5/12). Will be watching the diagonal support and my plan is either to BTC at any retest of $165 (90% profit on both), or cut for loss if TSLA zooms past $172 diagonal and the $176 horizontal resistance.
Happy to be learning from all of you!
TSLA Jun 21st '24 300 Short Call (30) | OptionStrat
View my options strategy on OptionStrat
optionstrat.com
TSLA May 12th 182.50 Short Call (60) | OptionStrat
View my options strategy on OptionStrat
optionstrat.com
TSLA May 12th 180 Short Call (30) | OptionStrat
View my options strategy on OptionStrat
optionstrat.com
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EVNow
Well-Known Member
I hope those who opened ATM calls at 160, 165 are doing ok. This is why I fear near ATM calls.
BTW, this is also actual market makers delta hedge completely - otherwise they will end up with huge losses when a runup like this happens. SP still tends to still close around big call/put walls because of option closing action on Fridays. But MMs couldn't care less what the closing price is. They make money on theta and bid/ask spreads.
BTW, this is also actual market makers delta hedge completely - otherwise they will end up with huge losses when a runup like this happens. SP still tends to still close around big call/put walls because of option closing action on Fridays. But MMs couldn't care less what the closing price is. They make money on theta and bid/ask spreads.
Well, that didn't go to plan.... I had done a sell write (sell stock, sell cash secured Puts). Anything below SP 167.5 would have been profitable. Now I'm looking for a pull back at the open on Monday to either buy the shares back, or sell new Puts with higher premiums than we have currently. I also have to worry about my CC at 182.5 for 5/12.
My -C170 showed up as expired today
I closed 20x 165c at open at $1.49 (good thing I was awake at 6:30 am) for decent profit because they were opened last week.
I did get stuck with 5x -c160 that I rolled to -c162.50c next week. Also holding 15x -5/12 c170 from before and opened 3x 5/12 -p170 today. And picked up a couple more 12/25 +c300 just in case.
I still don’t expect the SP to rocket higher until we get reassuring earnings, even if macro is improving, so I think I’ll be able to roll out of this.
If I do lose the shares, my long position will be way up. It would be bittersweet but much better than the abject horror of dealing with short puts on margin in a concentrated and rapidly declining portfolio.
EVNow
Well-Known Member
Interesting ... may be not enough people holding 170 calls bothered to take assignments ?
BTW, how does getting getting stocks for calls expiring ITM work in practice ? Does the brokerage call you asking what you want to do ... ?
It’s automatic - if holding a 170c, your call disappears, $17k cash disappears, and 100 shares appear.
I’ve called the brokerage to ask them to “do not execute” calls that were slightly in the money. In which case, whoever is randomly on the other end gets lucky and saves a few bucks.
SebastienBonny
Member
Rolled 5/12 175 CC to 5/26 180 CC for 1.3ish. Not taking any chances and rolling early. If we do get a pullback soon, I may close this contract early or roll it back in.
I want to add that upon further reflection I think I was wrong selling more covered calls as the share price rose. This can be dangerous.
I believe the proper behavior would have been that once TSLA broke $167 (important support) I should have liquidated the -C at a loss instead of chasing, and then wait to reposition. This is because once TSLA gets going it can get really manic and zoom up even more, trapping me in my position.
Better to go flat and reset and wait for the run to lose steam and find its new apex, only then assess whether/when/where to STO new short calls.
Now, because of my tunnel vision of averaging up during the run, I have to hope for a retrace on Monday to escape them without much loss, and hope is not a wise or healthy trading strategy!
In my favor of a chance to escape my mistake is the gap left below at around $162, though dunno if it’ll have much magnetic power in a bull run.
More in favor is @dl003 ’s point earlier that before TSLA breaks $171 it should pull back to test $165 once (and to BTC short calls—including any 5/12 $180 and $182.5—on that retest).
For those trading options for years, am I right about not writing short calls on a day like this past Friday, or writing/averaging up as SP runs and approaches resistance during a run is a valid strategy? Would love to hear your thoughts
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