2 Day Trade with PTON for a Nice Gain
I made a trade with Peloton 2 days ago. I’ve been so hectic lately I didn’t get time to report it. I’m busy trading, answering emails. working in the year getting ready for the summer. Also 2 days this week I spent on Long Island visiting friends. One day I visited an old friend from the FDNY basketball team, Chief Mike Burke. Mike was one of the older players when I got on the job. Mike is having some health issues and is living in an assistant living facility. Very sad!
Yesterday I visited one of my closest friends I played college basketball with.
I sorry I’m a little slow answering emails, sometimes I get slammed. But I want them to continue coming in.
Back to my trade. As you know I’m taking a beating with Peloton. I made a lot of money the past year with the stock but I think it’s all out of my account, at least most of it.
With the stocking taking a huge hit lately I felt it was gonna pop a little. On Wednesday I decided to double down and buy some long term options in addition to owning the stock. It paid off! The stock did pop. I did not report the trade so with this email I included the “Trade Notifications” so you can see the trade. I bought 20 contracts of the 6/17/22 $80 Call for a premium of $22. This cost me $44,000.
5/5/21 – Buy to Open 20 PTON 6/17/21 $80.00 C @ $22.00
As most readers know I don’t buy short term options. I think it’s a losers game! I’d rather spend more money on the long term option and get a lot of protection. This doesn’t mean I hold it long term. If I make a profit I get out. PTON popped and I only held 2 days. I sold this option today for a nice, much needed gain.
5/7/21 – Sell to Close 20 PTON 6/17/21 $80.00 C @ $25.25
Profit $6500
I paid $22 for $44,000 and sold at $25.25 for $50,500 for a profit of $6500.
Since I didn’t have time to report this trade I included snap shots of my Trade Notifications.
Buy to Open & Sell to Close
In the next week I have a lot of work to do. It’s time to pay the taxes for last year. I’m not a happy camper lol. My account might have to get reduced my a large amount. Oh well, there’s no free lunch! And it looks lunch might be more expensive next year.
Successful trading,
Steve
The Options Coach