Peloton Covered Call

Peloton (PTON) is a stock that moves well when the coronavirus causes the market to go down. I bought 1000 shares of the stock on Monday, pre-market. It turned out to be not a great buy, when the drug company Moderna came out with some good news on a possible vaccine the market jumped higher and PTON dropped back. No Problem! PTON is coming back and with the stock at $45.50 I just sold a 10 contract Call.

5/18/20 – Buy 1000 Shares PTON @ $47.45

Today – Sell to Open 10 PTON 5/22/20 $48.00 C @ 50¢ (+$500)

I sold the $48 Call to expire this Friday. I did get a $500 premium which is a Rate of Return of 1.1%. This trade fits into my 1 Week/1% strategy. It is a Covered Call on a good stock so it gets a Risk Factor 1.

Slow and Steady, Steady and Slow! Even in this crazy volatility there is no get” rich quick scheme” in the stock market!

Successful Trading,

Steve

The Options Coach