Back on 10\/2 I bought 1000 shares of Draftkings (DKNG) at $63.70 and sold a Covered Call. I was hoping to get assigned but was not. After I sold the Call the stock started to tank because of a raise in COVID cases. The stock went all the way down to the $35 area. The stock started to move but it’s still too low to get a good premium, for a near term option, without risking losing the stock at a much lower price than where I bought. Today the stock is at $42.<\/p>\n
I decided to sell a Call out to 1\/15\/21 with the Strike Price of $65. This Expiration Date is 3 months away and gave me a premium of $1.10 for $1100.<\/p>\n
10\/2\/20 \u2013 Buy 1000 Shares DKNG @ $63.70<\/strong><\/p>\n 11\/5\/20 – Sell to Open 10 DKNG 1\/15\/21 $65.00 C @ $1.10 (+$1100)<\/strong><\/p>\n I feel bringing in an $1100 premium was better than leaving the stock idle. If the stock goes up and I get assigned at $65 I also make money on the stock sale. I like this position and it gets a Risk Factor 1<\/strong>.<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Back on 10\/2 I bought 1000 shares of Draftkings (DKNG) at $63.70 and sold a Covered Call. I was hoping to get assigned but was not. After I sold the Call the stock started to tank because of a raise in COVID cases. The stock went all the way down to the $35 area. The […]<\/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-9242","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\/p75MP0-2p4","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9242","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=9242"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9242\/revisions"}],"predecessor-version":[{"id":9243,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9242\/revisions\/9243"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}