Yesterday I bought 2000 shares of Peloton (PTON) at $59.90 and sold 20 7\/10\/20 $60 Calls. The selling of these Calls gave me a premium of $2 for $4000.<\/p>\n
PTON is on a run and is a very hot stock. How high can it go? Who knows? But I feel it might slow down a little, while it continues up at a slower pace.<\/p>\n
With this in mind I just entered a position doing my favorite strategy with PTON. My favorite strategy is Naked Calls. I haven’t done many recently because of the market movement, but with my feeling about PTON I just entered a 10 contract Naked Call with a $65 Strike Price. This Naked Call is about 3 and a half dollars Out-of-the-Money, and it expires this Friday. I received a premium of 50\u00a2.<\/p>\n
Sell to Open 10 PTON 7\/10\/20 $65.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n With this Naked Call I placed a “Buy-Stop” Order at $64.50. If the stock gets up to $64.50 my broker will automatically buy the 1000 shares to cover the Call (the execution of this buy order is not guaranteed).<\/p>\n This is my favorite strategy because I love bringing in premiums without making an investment. If PTON never gets to $64.50 before Friday I will not buy the stock and I’ll keep the $500 without making an investment.<\/p>\n However, this is a hot stock, so even with my “Buy-Stop” order on I still give this trade a Risk Factor 3<\/strong>. This trade carries some danger.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Yesterday I bought 2000 shares of Peloton (PTON) at $59.90 and sold 20 7\/10\/20 $60 Calls. The selling of these Calls gave me a premium of $2 for $4000. PTON is on a run and is a very hot stock. How high can it go? Who knows? But I feel it might slow down 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-8021","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-25n","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8021","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=8021"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8021\/revisions"}],"predecessor-version":[{"id":8025,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8021\/revisions\/8025"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}