To The Moon

TL;DR: Don't take it seriously, likely to rebound next week.

$Tesla Motors(TSLA)$

Tesla's weekly options have become routine, just ask two questions beforehand:

1. Are there any new large institutional rolls/open interest being added in longer-dated strikes?

2. Are institutions closing their $TSLA 20240816 185 CALL$  short positions?

If no new rolls and no short covering, then deploy the stock/call/put combo:

• Sell $TSLA 20240628 195 CALL$ 

• Hold 100 shares

• Sell $TSLA 20240628 170 PUT$ 

If no shares, just sell the puts. Naked call sales are risky.

If you're up late, say after 2am, you can check for unusual TSLA option activity to see if any institutional rolls.

However, their positioning has shifted from doomsday call selling to bullish buying recently. This aligns with Tesla's price action rallying one day almost every week now.

But I still prefer the stock/call/put combo for its simplicity.

$NVIDIA Corp(NVDA)$

My calculation has Nvidia closing around $120-125 today, around $130 next Friday. Calls getting crushed this week, puts next.

So today's plan:

• At the open, sell $NVDA 20240628 140 CALL$ 

• Buy 1 contract of the weekend at-the-money put, $NVDA 20240621 128 PUT$ , just for fun.

• If it drops to $122, cover the 128 puts and sell either $NVDA 20240628 120 PUT$  or 115 PUTS based on risk preference.

• If unavailable to trade Friday, just sell calls at the open.

If unsure about next week, modify step 2 to buy NVDA 20240628 125 PUTS for a hedge instead.

But regardless of today's close, selling next week's calls like the NVDA 20240628 140s can't really lose.

$Apple(AAPL)$

Open interest around $200 is still quite heavy, likely closes below $205 today.

If Nvidia drops over 5%, other tech is unlikely to be spared, with the Nasdaq probably pulling back around 1% too.

However, $200 should still serve as solid support post-breakout. The stock/put/call combo works well:

• Sell $AAPL 20240628 200 PUT$ 

• Hold 100 shares

• $Sell AAPL 20240628 220 CALL$

If no shares, just the put sales are fine. Naked call sales are risky.