On Monday I sold a 40 contract Call against my 4000 shares of Peloton. I received a premium of $4.75 for $19,000. A few hours after I was in that position the stock dropped and the premium was down to $2.25. I did a “Buy to Close” to close the position locking in a profit of $10,000.<\/p>\n
Why did I do this? Why not just hold the Cover Call until expiration and keep the entire 19K?<\/p>\n
This is a great question! The answer is greed probably got the best of me. However, I did lock in $10,000 in a few hours.<\/p>\n
My thinking was, Peloton would recover and I’d get another Call sold for the $19,000. It was only Monday! Well, it didn’t work out that way. Peloton continued down.<\/p>\n
I did mention in the post reporting the move that it normally doesn’t work out the way I want, but I did it anyway.<\/p>\n
Today the stock bounced back a bit and I just sold another 40 contract Call. I sold 40 1\/29\/21 $160 Calls for a premium of $1.60 for $6400. Not bad!<\/p>\n
Sell 40 PTON 1\/29\/21 $160.00 C @ $1.60 (+$6400)\u00a0<\/strong><\/p>\n Remember I’m in this stock at $134.12. If I get assigned at $160 this will be my biggest week ever. If not, I sell another Call next week.<\/p>\n This trade is a Covered Call on one of my favorite stocks so it gets a Risk factor 1<\/strong>.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" On Monday I sold a 40 contract Call against my 4000 shares of Peloton. I received a premium of $4.75 for $19,000. A few hours after I was in that position the stock dropped and the premium was down to $2.25. I did a “Buy to Close” to close the position locking in a profit […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-10313","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2Gl","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10313"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10313\/revisions"}],"predecessor-version":[{"id":10314,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10313\/revisions\/10314"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}