Sold 40 Peloton Calls

It’s been a busy morning! The NASDAQ opened up and the Dow down. Lucky for me Peloton was up. With the stock up about $4 I placed an order to sell 40 PTON $165 Calls. I entered a very high premium and while I was writing the post for the Nio Grasshopper trade I was filled. I own 4000 shares at $134.12 and already have a huge profit (if sold). With the stock at $165 I was filled on my $165 Call. I went with the lower Strike Price because I’d like to get assigned and lock in the money. The lower Strike Price gave me a premium of $4.75 for a whopping premium of $19,000.

Sell to Open 40 PTON 1/29/21 $165.00 C @ $4.75 (+$19,000)

This is a wild premium for a 1 week trade. This trade gets a Risk Factor 1.

After I was filled the stock pulled back a little but is still up on the day.

Successful trading,

Steve

The Options Coach