I have a bunch of readers who like Penn National Gaming (PENN). And I read a few reports a few weeks ago which were favorable. Just a few weeks ago the stock was up at $40. I think the stock is nearing a bottom so I just bought 1000 shares. Believe it or not I just bought 1000 shares for $4.90. Along with the stock buying I sold a 10 contract, $5 Call to expire this Friday, 3 days. I received a premium of 80\u00a2 for $800. This premium is a return of 16% for a 3 day option. These premiums are crazy. I figured let me buy the stock to cover the Call because even if it went to $0 I wouldn\u2019t lose that much. I feel the stock will go up a little and I\u2019ll get assigned. Either way I\u2019m OK with this trade.<\/p>\n
PENN Covered Call<\/strong><\/p>\n Buy 1000 Shares PENN @ $4.90<\/strong><\/p>\n Sell to Open 10 PENN 3\/20\/20 $5.00 C @ 80\u00a2 (+$800)\u00a0<\/strong><\/p>\n I like this trade so much I give it a Risk Factor 1<\/strong>. and I might do another 10 contracts.<\/p>\n From the start of the big drop my account is down about 28%, which really isn\u2019t that bad, considering everything. I\u2019m fighting back hard!<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I have a bunch of readers who like Penn National Gaming (PENN). And I read a few reports a few weeks ago which were favorable. Just a few weeks ago the stock was up at $40. I think the stock is nearing a bottom so I just bought 1000 shares. Believe it or not I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-7357","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-1UF","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=7357"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7357\/revisions"}],"predecessor-version":[{"id":10751,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7357\/revisions\/10751"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}