Filled on a 20 Contract PTON Call

I bought 1000 of Peloton (PTON) on 7/13 for $68.50 per share, and 1000 shares on 7/15 for $63.30. I have 2000 shares at an average price of $65.90. To help get assigned I sold 20 contracts of the PTON 7/31/20 $66 Calls for a premium of $1.20 for $2400. I could have sold (2) 10 contract Calls but I used the average price to help get assigned on the entire 2000 shares at $66. If this happens I’ll make another 10¢ on the 2000 shares for $200.

Sell to Open 20 PTON 7/31/20 $66.00 C @ $1.20

This Covered Call position gets a Risk Factor 1.

We only have 4 days until expiration so I really wanted to get the Call sold. But because of my desire to get the premium I sold a little early. I received a premium of $1.20 but as I write the premium is up to over $2. You must remember, this happens all the time. Yesterday I didn’t pull the trigger waiting for the higher premium, and the stock went down and never came back up to get the Call sold. Not too often will you make moves at the perfect time. Buy the stock at the lowest point, sell the stock at the highest point, get the highest premium, get the perfect price etc, etc. It doesn’t happen often. In this trade I’ll take my $2400 premium and never look back! You must develop this mindset.

As I was writing the premium is back down to $1.20 lol.

Successful Trading,

Steve

The Options Coach