i have one question for the options theoreticians here at et about the value of options.

[elitenapper]

TSLA is actually one of the stocks that provides pretty consistent gains for options sellers. But it doesn't mean that from time to time it cannot lose big time when the stock moves more than expected, and this is the big risk. If you are willing to take an occasional big loss and structure your position accordingly, then TSLA is probably one of the better candidates to sell options before earnings. I would still not do it naked. You can use iron condor or calendar to limit the risk.

Good to know.

Would you say Tesla's May 2-4 price movement was a rare phenomenon? TSLA closed at $301 on May 2 (EA after close), dropped to a low of $276 on May 3, and closed at $294 on May 4 (expiry). So naked straddle sellers received premiums priced for a big move on both calls and puts (about $2400 per straddle) and saw the options expire only $6 away from $301. In fact, TSLA closed the following Monday at $302.77

 

[vanzandt]

TSLA is actually one of the stocks that provides pretty consistent gains for options sellers. But it doesn't mean that from time to time it cannot lose big time when the stock moves more than expected, and this is the big risk. If you are willing to take an occasional big loss and structure your position accordingly, then TSLA is probably one of the better candidates to sell options before earnings. I would still not do it naked. You can use iron condor or calendar to limit the risk.

Hey Kim... can you post one of these type charts for Intuit. (INTU)

https://elitetrader.com/et/threads/...up-30-00-during-ah.320801/page-5#post-4652919