The loyal Main Street beats Wall Street readers know I’ve been playing Peloton (PTON) like a piano. And for many months!<\/p>\n
Last week, you’ll remember, I had a 10 contract Covered Call which was to expire Friday. With a Strike Price of $72, and the stock around $67, on Thursday I sold another 10 contract Call to expire the next Friday. This Call was Naked until the 1st Call expired. I felt the stock was not going to hit $72 in the 1 day remaining to expiration, so I sold the other Call early for the higher premium. The stock did not hit the $72 Strike Price and the 1st Call expired.<\/p>\n
Today I made the same move. PTON is at $67.80 and I have that $72 Covered Call going. Again, I feel the stock will not hit $72 by Friday so I sold another 10 contract Call. This is also a $72 Call to expire next Friday.<\/p>\n
If PTON does hit $72 by this Friday I’ll get assigned and the Call I sold today will remain Naked. I hope the stock does not hit $72, the Call expires, And the shares I own will cover the new Call I just sold.<\/p>\n
I sold the PTON 9\/4\/20 $72 Call for a premium of $1.30. I received a nice premium because there is 10 days until expiration.<\/p>\n
Sell to Open 10 PTON 9\/4\/20 $72.00 C @ $1.30 (+$1300)<\/strong><\/p>\n If you have any questions on this trade send me an email. The bottom line is, I own 1000 shares of the stock and have (2) 10 contract Calls sold against them. 1 is covered and the other is Naked. The Naked Call I sold today gets a Risk Factor 5.<\/strong> Once the 1st Call expires on Friday the 2nd Call will become Covered and that position will have a risk factor 1.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The loyal Main Street beats Wall Street readers know I’ve been playing Peloton (PTON) like a piano. And for many months! Last week, you’ll remember, I had a 10 contract Covered Call which was to expire Friday. With a Strike Price of $72, and the stock around $67, on Thursday I sold another 10 contract […]<\/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-8630","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2fc","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8630","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=8630"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8630\/revisions"}],"predecessor-version":[{"id":8633,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8630\/revisions\/8633"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}