This past Tuesday I sold a 10 contract Naked Call on Peloton (PTON). With the stock in the $61.50 area I sold 10 7\/10\/20 $65 Calls for a premium of 50\u00a2 for $500.<\/p>\n
When I was filled on that order I placed a “Buy-Stop” order to buy 1000 shares at $64.50. In the case the stock approached my Strike Price of $65 I would be filled at $64.50 to cover my Naked Call. Well, this morning a little after the open the stock went as high as $65.25. As the stock was moving up my “Buy -Stop” order was filled. I now have a 10 contract Covered Call on PTON.<\/p>\n
Buy 1000 Shares PTON @ $64.50<\/strong><\/p>\n Now that this position is a Covered Call the Risk Factor is moved from a 3 to a Risk Factor 1<\/strong>. Now I would like to see the stock continue up to where I get assigned tomorrow. If this happens I’ll make another $500 on the stock sale.<\/p>\n The important thing to know and understand about this trade is that my protective, “Buy-Stop” order, strategy worked and protected me from having a Naked Call In-the-Money on a very hot stock.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" This past Tuesday I sold a 10 contract Naked Call on Peloton (PTON). With the stock in the $61.50 area I sold 10 7\/10\/20 $65 Calls for a premium of 50\u00a2 for $500. When I was filled on that order I placed a “Buy-Stop” order to buy 1000 shares at $64.50. In the case the […]<\/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-8036","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-25C","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8036","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=8036"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8036\/revisions"}],"predecessor-version":[{"id":8037,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8036\/revisions\/8037"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}