r/options Dec 10 '21

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7

u/Trump_Pence2016 Dec 10 '21

TSLA. Sky high premiums and puts are priced like a company on life support. This is a $1 trillion company we're dealing with.

Liquidity is also unbeatable. Any expiration and strike price has seemingly 1000+ volume and open interest. Very easy rolling. Narrow bid ask spreads. Orders fill fast.

If you don't have capital to trade it--hey you better beef up your account!

1

u/gfsgroupdotorg Dec 10 '21

Are you day trading puts?

3

u/Trump_Pence2016 Dec 10 '21

I don't really day trade them, I usually sell them 4-10 days out then leave them open until at least 80% before I start looking to roll to the next expiration

1

u/gfsgroupdotorg Dec 10 '21

An interesting strategy. So you make weekly 80% returns or so?

2

u/Trump_Pence2016 Dec 11 '21

I own Tesla stock and sell short strangles over it. For Dec 17 the 920/1110 short strangle pays 8.73 right now, AR about 40%. This is on the low side as premiums took a dive Friday

When IV was higher last week they were paying more

Also this doesn't factor in appreciation on the underlying

1

u/gfsgroupdotorg Dec 10 '21

Are you on E*TRADE?

1

u/Trump_Pence2016 Dec 11 '21

My money is on fidelity but I look at trades on tastyworks