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Ok balls. Tesla at 251. Calls at 230

On Friday. Not sure how far into the week I want to go with this but. We own 3130 shares here. I’m going to lose $21 a share at todays price right?

What is I bought not out at $22 and sold a 7/19 call for the same. $22. But this strike is $240. If the stock doesn’t move in 2 weeks I’ll have bought it out and resold it for $22. Wash right? But would be forced out at $240 not $230. So that’s 31,300 $ for the good guys. Just for two weeks

Let’s say it stays the same. In two weeks I’ve already looked it up. If it’s still at $251 and I have a call for $240? I can buy it out at $14.50 I think. But even better. Can sell another call in another 2 weeks for that $14.50. This time for $255.

So for a months patience, I can be forced out at $255 not $230 and that’s $78,000 for the home team. Especially since that’s actually realizing 10% ok something I thought I got caught w my pants down in. Think recouping a lost 10% inside a month is a worthwhile pursuit yeah? As opposed to rolling over and letting them cash me out of this thing?

14 comments

14 Comments

BigBallss

Jul 10, 2024

Java,

wondering if you posted this on Twitter

TESLA COVERED CALL PREMIUMS ARE JUICY RIGHT NOW. You could buy 100 shares today at $265 = $26,500.

Then you could sell the $280 covered call for September 20th and receive $2,280 in premium…

Thats a 8.6% return along with a 5.6% return if Tesla gets to $280, for a total of 14% in about 3 months.

This makes sense and is a strong strategy if you think $TSLA doesn’t blow past $280…the premiums are gigantic right now because most people are betting that Tesla actually gets closer to $300 by the end of the year. Question is if Tesla is closer to $300 after 8/8…

Onikoroshi

Jul 11, 2024

Replying to

when that word 'if' shows up

I'm pretty sure that's straight up gambling

see you at the craps table

BigBallss

Jul 11, 2024

Replying to

Absolutely. That’s how it feels too. The anxiety with stocks is pretty much the same as gambling.

Java

Jul 11, 2024

Replying to

The one difference is that the games I play U less something seriously goes wrong. And it can. Are games where I have multiple opportunities to win. And I just have to win once.

The negative is that the way I play I win relatively little. $600 or $2000 or $6000 at a time. And when things go south I lose a lot. Like 50-100k. And that takes awhile to make up. I’m still smarting over saving tqqq from selling out at 73 and costing me $200k to keep it. Which only paid off if it hit $77. It’s presently $81. So. Good move for now. But cost me all my cash And feels like a loss

BigBallss

Jul 08, 2024

It’s up to $255 this morning. We should have seen some profit taking and selling off by now. And downward pressure on the stock. Trading volume is below average right now, so there is no unusual selling. I would expect this thing to start settling down and even going backwards a little bit. This stock is historically unpredictable and volatile. In your situation I would look to get out before this thing takes off again, which it very well could. Sorry I’m not much help here.

BigBallss

Jul 10, 2024

Replying to

It’s a lot of work, but definitely worth it. $112,000 is a good annual salary for many people in America. But you gotta have money to make money. I remember a time in my life where I thought I had made it big by cracking 100k in a year. And it was 12-14 hour workdays to do it too. It was hard. It is so much easier once you have a little cash to invest. AAPL, Tesla, WMT and Nvdia are kicking in big. I look at my brokerage account and smile seeing those numbers. Seems so easy. How much longer will this party last? I’m hoping until November

Edited

Java

Jul 30, 2024

Replying to

Now we have a call at $240 as I stated above. Expires 8/9. So if Tesla stays below $240 till next Friday 8/9 I’m solid. If not we throw it forward again to like 245 And creep our way up to the point where Tesla eventually isn’t there and we get out.

BigBallss

Jul 30, 2024

Replying to

226 today 7/30, very good chance it stays below 240 til 8/9. Sounds like you’re solid. Rooting for you.