Out of my 40 Contract Peloton Covered Call

I own 4000 shares of Peloton at $134.12. This morning I sold a 40 contract Call bringing in a premium of $19,000. I just did a “Buy to Close” on this position locking in $10,000.

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

But to Close 40 PTON 1/29/21 $165.00 C @ $2.25 (-$9000)

Profit +$10,000

Well, why did I do this?

The main reason is I made $10,000 in a half day.

This is only Monday. I locked in $10,000 and I have the full week to sell another Call. I’m hoping the stock fluctuations back up and I get another 40 contract Call sold. Whenever I do this it doesn’t seem to work out well. But this time I locked in $10 grand.

Lets see what happens. I have a few more days to get a Call sold. Also, if the stock gaps up over night I’m not obligated to deliver the shares.

Successful trading,

Steve

The Options Coach