{"id":9007,"date":"2020-10-06T14:07:11","date_gmt":"2020-10-06T18:07:11","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=9007"},"modified":"2020-10-07T09:55:25","modified_gmt":"2020-10-07T13:55:25","slug":"peloton-triple-play-hedge-2","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=9007","title":{"rendered":"Peloton “Triple Play Hedge”"},"content":{"rendered":"

Triple Play Hedge, don’t google it! You won’t find it! This is a strategy I made up which worked every time I used it. Let’s hope it doesn’t fail me now.<\/p>\n

You can read about my Triple Play Hedge<\/a><\/span> by hitting the link. I have a page that explains it. It’s probably not for Grasshoppers, and you need a decent size account to execute. Main Street beats Wall Street<\/strong> is a learning site but I do post every trade I make. You will have to pick and choose which strategies I use that would be good for your level.<\/p>\n

A Triple Play Hedge involves buying a stock and selling 3 separate Call Options. Each Call has the amount of contracts to match up with the shares of stock bought. In this case I bought 1000 shares of Peloton and I sold (3) 10 contract Calls with different Strike Prices. With this Triple Play Hedge I bought the stock at $107.75 and sold 10 contracts each of the $109 Call, the $118 Call and the $120 Call. 1 Call is Covered and the other 2 are Naked.<\/p>\n

I previously had the stock and sold the $109 Call to make a Covered Call. Then I sold another Call which was the $118 Strike Price. Today I sold another Naked Call to complete the Triple Play Hedge. Today I sold 10 contracts of the 10\/9\/20 $120 Call for a premium of 55\u00a2.<\/p>\n

Sell to Open 10 PTON 10\/9\/20 $120.00 C @ 55\u00a2 (+$550)<\/strong><\/p>\n

Below is the complete Triple Play Hedge.<\/p>\n

So, what do I hope happens? I hope on Friday the stock closes above $109 but below $118. If this happens my Covered Call will get assigned and the 2 Naked Calls will expire.<\/p>\n

Why do I do this? In the case the stock drops I have 3 Calls as insurance. If the stock closes drops below my 1st Strike Price and goes below my buy-in price, I have the 3 premiums to make up for the loss in the stock price. If the stock falls below the $107.75 price I have the $3500, $800 and $550 premiums in my account to make up for any stock loss.<\/p>\n

If the stock goes up to the $118 Strike Price I’ll cover by buying more shares. My feeling is that the stock will stay below my 2nd Strike Price of $118. If we get a stimulus I might have to cover both the $118 and the $120.<\/p>\n

Peloton Triple Play Hedge<\/span><\/h4>\n

10\/2\/20 \u2013 Buy 1000 Shares PTON @ $107.75<\/strong><\/p>\n

10\/5\/20 \u2013 Sell to Open 10 PTON 10\/9\/20 $109.00 C @ $3.50 (+$3500)<\/strong><\/p>\n

10\/5\/20 \u2013 Sell to Open 10 PTON 10\/9\/20 $118.00 C @ 80\u00a2 (+$800)<\/strong><\/p>\n

10\/6\/20 – Sell to Open 10 PTON 10\/9\/20 $120.00 C @ 55\u00a2 (+$550)<\/strong><\/p>\n

If interested, please read my Triple Play Hedge page and send me any questions.<\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Triple Play Hedge, don’t google it! You won’t find it! This is a strategy I made up which worked every time I used it. Let’s hope it doesn’t fail me now. You can read about my Triple Play Hedge by hitting the link. I have a page that explains it. It’s probably not for Grasshoppers, […]<\/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-9007","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2lh","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9007","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=9007"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9007\/revisions"}],"predecessor-version":[{"id":9017,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9007\/revisions\/9017"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}