Today the market was ready to open up about 300 points, but at about 8am drug maker Moderna Inc came out with news about a possible vaccine. This news caused the futures to go up into the 700 area. As I write then market is up 785 points.<\/p>\n
I had a very busy morning. I’m sorry I didn’t get the trades posted as I made them but I was very busy watching the charts. Below are trades I was filled on in the last hour.<\/p>\n
RH – Covered Call<\/strong><\/span><\/p>\n Last week I bought 100 shares of RH at $155.50. Today I sold a 1 contract Call $167.50 Call to expire this Friday. I received a premium of $4. This is a Rate of Return of 2.5%. This is a Covered Call on a good stock so it gets a Risk Factor 1.<\/strong><\/p>\n Sell to Open 1 RH 5\/22\/20 $167.50 C @ $4.00 (+$400)<\/strong><\/p>\n Draftking – Covered Call<\/strong><\/span><\/p>\n DKNG has been a hot stock since it went public a few weeks ago. It’s not one of my favorites because it doesn’t fit into my strategy. I work on margin and you cannot buy this stock on margin. But to get in the game a little I bought 200 shares at $29.80 and sold a $30 Call to expire Friday. I got a premium of $2 for a Rate of Return of 6.7%. I figured for this return it was worth the risk. This trade gets a Risk Factor 2.<\/strong><\/p>\n Buy 200 Share DKNG @ $29.80<\/strong><\/p>\n Sell to Open 2 DKNG 5\/22\/20 $30.00 C @ $2.00 (+$400)<\/strong><\/p>\n United Airlines – Covered Call<\/strong><\/span><\/p>\n I already own 1000 Shares of UAL at $28. The stock is way down to $23.25. I couldn’t get much of a premium on a Call expiring this Friday so I went out to next week. I sold 10 5\/29\/20 $26 Calls. I’ll watch this closely because I sold the $26 Call but I’m in the stock at $28. If I get assigned I’ll lose $2000 on the stock sale. If the stock moves I might cover this Call with another 1000 shares. This is a Covered Call on previously owned stock so it gets a Risk Factor 1<\/strong>.<\/p>\n Sell to Open 10 UAL 5\/29\/20 $26.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n Square – Naked Call<\/strong><\/span><\/p>\n This is a 5 contract Naked Call. This is a risky trade! I made it because SQ received a downgrade today, and it received a few more in the last few weeks. I’l watch this position closely. If the stock goes up I’ll cover. This is a Naked Call so it gets a Risk Factor 5<\/strong>.<\/p>\n Sell to Open 5 SQ 5\/22\/20 $80.00 C @ $1.50 (+$750)<\/strong><\/p>\n Nvidia – Triple Play Hedge<\/strong><\/span><\/p>\n This is the big trade of the day. It’s a NVDA Triple Play Hedge. I only did 2 contracts because NVDA is a very high priced stock. If you are a new reader please read my Triple Play Hedge page.<\/p>\n I bought 200 shares at $350 and sold 2 contracts each of the $360, $370 and the $380 Calls. All expiring this Friday. Check out the premiums, there’s a total of $4490. This one I’ll watch very closely! Especially Thursday afternoon, they announce earnings.<\/p>\n Buy 200 Shares NVDA @ $350.00<\/strong><\/p>\n Sell to Open 2 NVDA 5\/22\/20 $360.00 C @ $10.25 (+$2050)<\/strong><\/p>\n Sell to Open 2 NVDA 5\/22\/20 $370.00 C @ $7.20 (+$1440)<\/strong><\/p>\n Sell to Open 2 NVDA 5\/22\/20 $380.00 C @ $ 5.00 (+$1000)<\/strong><\/p>\n If things work out the way I want this will be a very good week. But we have a long way to go.<\/p>\n We have a few new subscribers. I would like to welcome you to the Main Street beats Wall Street<\/strong> family. If you have any questions send me an email and I’ll do what ever I can to make sure you make money.<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Today the market was ready to open up about 300 points, but at about 8am drug maker Moderna Inc came out with news about a possible vaccine. This news caused the futures to go up into the 700 area. As I write then market is up 785 points. I had a very busy morning. I’m […]<\/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-7653","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-1Zr","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7653","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=7653"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7653\/revisions"}],"predecessor-version":[{"id":7662,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7653\/revisions\/7662"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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