I just made 2 trades. One was a 20 contract Covered Call with Peloton (PTON) and the other a 10 contract Naked Call with Advanced Micro Devices (AMD).<\/p>\n
On 10\/14 I bought 1000 shares of PTON at $132.50 and on 10\/16 I bought another 1000 shares at $139. I now own 2000 shares at an average of $135.75. I had sold Calls on all these shares a few times but then the COVID stocks pulled back on the announcement of the vaccine, which PTON is one of. Since the announcement I haven’t been able to get a Call sold. With the stock bouncing back today I got a Call sold. To get a decent premium I went out 25 days on the Expiration Date to Dec 24th. I sold 10 PTON 12\/24\/20 $135 Calls for a premium of $2.15 for $4300. This Call expires in a little over 3 weeks, which is a little longer that normal, but $4300 is a nice Christmas present.<\/p>\n
Sell to Open 20 PTON 12\/24\/20 $135.00 C @ $2.15 (+$4300) \u00a0<\/strong><\/p>\n I’m in the stock at $135.75 and sold the $135 Call so if the stock makes a big move and I get assigned I’ll lose 75\u00a2 on the stock sale. That’s a total of $1500. I made this trade because I don’t think the stock will get to $135. But because of the risk of losing the $1500 on the sale the trade gets a Risk Factor 2. Overall I wouldn’t lose money because of this premium and past premiums.<\/p>\n AMD is up $5 today. I don’t think it will continue up at this pace. This is why I sold 10 AMD 12\/4\/20 $96 Calls for a premium of $1.10 for $1100.<\/p>\n Sell to Open 10 AMD 12\/4\/20 $96.00 C @ $1.10 (+$1100)<\/strong><\/p>\n I sold the Call with the stock at $92.10. If the stock continues up and approaches my Strike Price of $96 I’ll buy the shares to cover the Call. However, this is a Naked Call on a very hot stock so the trade gets a Risk Factor 5<\/strong>.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" I just made 2 trades. One was a 20 contract Covered Call with Peloton (PTON) and the other a 10 contract Naked Call with Advanced Micro Devices (AMD). On 10\/14 I bought 1000 shares of PTON at $132.50 and on 10\/16 I bought another 1000 shares at $139. I now own 2000 shares at an […]<\/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-9439","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\/p75MP0-2sf","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9439","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=9439"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9439\/revisions"}],"predecessor-version":[{"id":9440,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9439\/revisions\/9440"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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