Sold Another Peloton 40 Contract Call

This is not a great day for the market but I just made a great trade.

I own 4000 shares of Peloton. On Monday of this week I sold a 40 contract Call bringing in a $19,000 premium. A few hours after I made that trade I did a “Buy to Close” to close the position locking in $10,000.

On Wednesday I sold another 40 contract Call for a premium of $6400. This Call will expire at the close today.

I should have never closed the 1st position but I thought it would have worked out differently. The way it worked out I locked in 2 premiums totaling 16,400. Not bad!

Since the 2nd Call will expire at the close I just sold another 40 contract Call to expire next week. I sold 40 PTON 2/5/21 $157.50 Calls for a premium of $4.75 for another $19,000.

Sell to Open 40 PTON 2/5/21 $157.50 C @ $4.75 (+$19,000)

This trade gets a Risk Factor 1.

Successful trading,

Steve

The Options Coach