16 sep - as i type futures are down a percent. here my current TSLA position as tweeted:
having the Jan2022 Leaps as a base i sell short calls against to make diagonal spreads. also called poor mans covered calls. also now the ideal situation is if i can also sell a short put. essentially selling a strangle. im unable to sell a naked strangle so this a workaround. the Leaps being 2022 there will be selloffs and rips but with diagonal spreads im looking to capitalize on the decay of the out of the money short calls. in the above tweeted situation, if held to next weeks opex there is nearly $6000 in decay. of course i will roll those prior to expiration to the next week but making a point. stock is up 90points since i bought the first Leap also.
so while waiting a week for the short calls to decay more, id like to add a short put. chart ive posted previously is still valid at levels to look at. with stock at 441 after hours the Oct02 320 put near 9delta is going for $6.00+ . as a minimum im going to be under the 330ish level, super best case as close to or below the 273level. premium is $2ish there so would need the occasional down 10% day, CNBC Markets in Turmoil, type day to juice those options to make it worthwhile.
i have an alert set for for <410 on the stock and an alert for the Oct02 315 put at > $8.00 just to get my head on the screen. will only do a one lot on the Put since ive got other Puts going on other stocks. also my biggest takeaway from the big selloff in march was to keep enough buying power available (small enough position sizes) to withstand a rapid selloff and potential margin requirement increase which happened to TSLA during the selloff.
I ended up taking a loss on that put sale to be able to fight another day, in hindsight the short put strike level did not end of getting breached and would have been a profitable trade at opex so adjusting my strategy to account for that.
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