Trying to Get Filled on a Covered Call With Workhorse

Earlier in the week I made a trade with Draftkings (DKNG). I sold a 10 contract $66 Naked Call. I didn’t realize they are reporting earnings tomorrow morning.

With such a sell-off today, if DKNG comes out with good earnings, tomorrow  I think the stock can go up above the Strike Price in my Naked Call. I decided to bail out of that trade. I got out with the same premium I received so it’s a wash.

2/23/21 – Sell to Open 10 DKNG 2/26/21 $66.00 C @ 55¢ (+$550)

2/25/21 – Buy to Close 10 DKNG 2/26/21 $66.00 C @ 55¢ (-$550)

Profit $0

I put the money to work on a trade that has less risk. I got out of the $60 stock position and got into a position with a $15 stock, and if things go well I’ll make more money.

I really liked the Grasshopper trade I made earlier with Workhorse (WKHS) so I decided to make a 10 contract Covered Call with the stock. I bought 1000 shares at $15.85 and placed an order to sell 10 WKHS 3/5/21 $17 Calls at $1.50. I didn’t get filled yet. As soon as I bought the stock it pulled back about 30¢. This Call wouldn’t expire until next Friday so if I don’t get filled I try again tomorrow.

Successful trading,

Steve

The Options Coach