Sold a Peloton Call

Yesterday was an extremely busy day. I was with students from the open well past the close. While I was teaching I was filled on a trade with Peloton but didn’t get time to post the trade.

I own 5000 shares of Peloton (PTON). 1000 at $167.30 and 4000 at $134.12. I placed orders to sell a 10 contract Call and a 40 contract Call. I was only filled on the 40 contract Call.

Since earnings a week ago PTON has not been moving well and the Implied Volatility (IV) is way down. I guess I got spoiled with the premiums I’ve been taking in the last few months. I tried to get Calls sold every day but was never filled with the premium I wanted.

In the middle of the day I placed a trade to sell 40 PTON 2/12/21 $148 Calls for a premium of 75¢ for $3000. It’s not the premium I’ve been getting but I was filled on the 1 day trade.

Sell to Open 40 PTON 2/12/21 $148.00 C @ 75¢ (+$3000)

I have been limiting my trades this week as I promised. I’ve set a goal to take in $10,000 in an attempt to start leaving money on the sidelines in the case of a correction. This trade should bring me pretty close to my goal. However, if I’m assigned on this Call this week will become the largest week of the year. I bought the shares at $134.12 so if assigned I’ll be selling 4000 shares at $148. Huge profit!

Successful trading,

Steve

The Options Coach