I bought 1000 shares of Draftkings (DKNG) back on 10/2/20 at $63.70. When I bought the shares I sold a Call but then the stock dropped to $50. In order to get a good premium for my next Call I had to go out to January. That Call expired without assignment so I still own the stock.
Today with the stock at $56 I just sold another Call. Again, to get a nice premium I went out to February with the Expiration date. I sold 10 DKNG 2/19/21 $65 Calls for a premium of $1.65 for $1650.
Sell to Open 10 DKNG 2/19/21 $65.00 C @ $1.65 (+$1650)
The biggest risk with Covered Calls is the stock going down. You must learn how to manage your positions if this happens. With this position I’m happy getting this premium for a 25 day option. And this is not the first premium I received. Every position does not work out perfectly. When the position goes against you, you have to do the best you can.
This Covered Call is a Risk Factor 1.
Successful trading,
Steve
The Options Coach