Sold Calls with PTON, DKNG & NVDA

I’m holding 2000 shares of Peloton (PTON), 500 shares of Draftknigs (DKNG) and 200 shares of Nvidia (NVDA). Yesterday with the market up these 3 stocks were down. I wasn’t able to get Calls sold. Today with the market down and these 3 stocks are up. Go figure!

I’m holding 2000 shares of PTON at $45.42. I sold 20 contracts of the PTON 6/9/20 $46 Calls for a premium of $1.55 for a total of $3100.

Sell to Open 20 PTON 6/12/20 $46.00 C @ $1.55 (+$3100)

This premium is a return of 3.4% for this 4 day option. The trade is a Covered Call on a good stock so I give it a Risk Factor 1. Assignment or not, I’m keeping this $3100.

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I own 500 shares of DKNG at $41.50. I just sold 5 DKNG 6/12/20 $42 Calls for a $1.20 premium. This gives me $600 and a return of 2.8%.

Sell to Open 5 DKNG 6/12/20 $42.00 C @ $1.20 (+$600)

This also gets a Risk Factor 1.

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I own my 200 shares of NVDA at $361. I just sold 2 contracts of NVDA 6/12/20 $365 Calls for a premium of $5. This gives me $1000 and a return of 1.3%. That’s a lot of money getting 1.3% for a 4 day deal.

Sell to Open 2 NVDA 6/12/20 $365.00 C @ $5.00 (+$1000)

This trade is also a Covered Call on a very good stock. These 3 trades I made today are all Risk Factor 1. All low risk trades!

Successful Trading,

Steve

The Options Coach