Yesterday I bought 1000 shares of Cree (CREE) at $121.50. I haven’t been involved in this stock for a while but it used to be on my list of stocks I trade on a weekly basis. Yesterday it received an upgrade by Cowen so I got back involved. They moved the stock rating from a “Market Perform” to a “Outperform.”<\/p>\n
I never got to report the purchase because I was waiting to get filled on my order to sell a Call. Today the market is way down and so is CREE. Yesterday I was going for a premium of $2.50 but was never filled. Today I had to lower my premium to get filled. I was just filled on 10 contracts of the CREE 2\/26\/21 $122 Call for a $1 premium for $1000. The premium came down a lot with the big market pullback.<\/p>\n
Buy 1000 Shares CREE @ $121.50<\/strong><\/p>\n Sell to Open 10 CREE 2\/26\/21 $122.00 C @ $1.00 (+$1000)\u00a0<\/strong><\/p>\n This trade gets a Risk Factor 1. If I get assigned I’ll make 50\u00a2 on the stock sale.<\/p>\n I also sold 20 contracts of the PTON 2\/26\/21 $133 Call for a premium of 50\u00a2 for another $1000. I own 2000 shares of Peloton at $151.28 & 167.30. The stock is too low to get a premium with these shares. I decided to bring in some money and take a chance on not getting assigned. With the stock at $121.50 I sold the $133 Calls. I’ll consider this Call a Naked Call but because I own shares this trade did not affect my margin. I do have to make sure I don’t get assigned here so I’ll watch very closely. If the stock gets close to my Strike Price I’ll buy more shares to deliver on assignment. This is why I went up to the $133 Strike.<\/p>\n Sell to Open 20 PTON 2\/26\/21 $133.00 C @ 50\u00a2 (+$1000)<\/strong><\/p>\n This trade gets a Risk Factor 4<\/strong>.<\/p>\n If you have any questions on either one of these trades send me an email.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Yesterday I bought 1000 shares of Cree (CREE) at $121.50. I haven’t been involved in this stock for a while but it used to be on my list of stocks I trade on a weekly basis. Yesterday it received an upgrade by Cowen so I got back involved. They moved the stock rating from a […]<\/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-10702","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2MC","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10702","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=10702"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10702\/revisions"}],"predecessor-version":[{"id":10705,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10702\/revisions\/10705"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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