You might remember, on Monday I sold a Crowdstrike (CRWD) Naked Call. I decided to write about the trade because I think there’s a good lesson to learn.<\/p>\n
With CRWD at $171 I sold a 10 contract 12\/11\/20 $180 Naked Call. I received a premium of $1.35 for $1350. You can read the post here Sold Crowdstrike Calls<\/a><\/span>.<\/p>\n On Wednesday the stock dropped down to the $162 area. With the stock at $163 the premium was at 30\u00a2. I decided to close out the position for the $300 leaving me with a $1050 profit. In the post reporting the “Buy to Close” I mentioned that the stock was at $163 and probably wouldn’t get back up to my $180 Strike Price before Friday. However, I closed the position anyway. You can read the post closing the position here<\/a><\/span>.<\/p>\n As I write I’m sitting around watching the aftermarket shows. CRWD closed at $179.99 and went above $181 in the aftermarket.<\/p>\n There are a couple of lessons here. One is greed, and the other is locking in profit. If I was greedy and didn’t want to spend the $300 to close a Naked position I could have gotten burned. No way did it look like the stock would get back up to $180. Well, it did! Selling Naked Calls can be very dangerous. When you have an opportunity to close out a position with a nice profit, you should. Especially when trading high priced, high volatile, hot stocks. If greed kept me in this position for the extra $300 I could be in a bad situation right now.<\/p>\n Another lesson is to take profit. The readers know I love to lock in profit. Take profit and move on!<\/p>\n If you have any questions about this trade, or any Naked trade, send me an email.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" You might remember, on Monday I sold a Crowdstrike (CRWD) Naked Call. I decided to write about the trade because I think there’s a good lesson to learn. With CRWD at $171 I sold a 10 contract 12\/11\/20 $180 Naked Call. I received a premium of $1.35 for $1350. You can read the post here […]<\/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-9549","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\/p75MP0-2u1","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9549","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=9549"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9549\/revisions"}],"predecessor-version":[{"id":9550,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/9549\/revisions\/9550"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}