I own 2000 shares of Peloton, 1000 at $151.28 and 1000 at $167.30. The stock is way down from where I bought so I cannot get a good premium at these prices. As I did last week, I sold a Call much lower than my buy-in price. I sold 20 contracts of the 3\/5\/21 Calls with a Strike price of $130. I received a premium of 80\u00a2 for $1600.<\/p>\n
Sell to Open 20 PTON 3\/5\/21 $130.00 C @ 80\u00a2 (+$1600)<\/strong><\/p>\n When I sold this Call the stock price was $122. If I get assigned at $130 I’ll lose my stock at a price much lower than my buy-in price, to take a huge loss. I do not want to get assigned. I just want to bring in some premium while I wait for the stock to bounce back up.<\/p>\n I’m listing this position on my Active Trades page under Naked Calls. I’m going to treat this position like a Naked position, even though it’s covered. I’m doing this because I don’t want to deliver my stock on assignment. If the stock gets up near my Strike Price of $130 I’ll buy more shares to deliver and hold onto my shares. But because I do own shares this trade does not cut into my available buying power. Any question on this send me an email.<\/p>\n I hope this makes sense. I’m just navigating around road hazards that I’m confronting. Since I’m in this position I’m giving this trade a Risk Factor 4<\/strong>.<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I own 2000 shares of Peloton, 1000 at $151.28 and 1000 at $167.30. The stock is way down from where I bought so I cannot get a good premium at these prices. As I did last week, I sold a Call much lower than my buy-in price. I sold 20 contracts of the 3\/5\/21 Calls […]<\/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-10838","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2OO","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10838","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=10838"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10838\/revisions"}],"predecessor-version":[{"id":10842,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10838\/revisions\/10842"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}