I Had a Very Busy Opening Half Hour

Today the market opened up 300 points and I had a lot of work to do. I’m happy I have the experience I do because I was watching a bunch of trades at the same time. And adjusting orders as the stocks moved. As I write I still have 1 trade that wasn’t filled. Hopefully it will get filled before I’m done with this post. The order is to Sell 5 contracts of the UAL 6/26/20 $37 Calls for a premium of $1.25.

Yesterday I was still working in the yard after my Father’s Day BBQ. I was filled on a trade I didn’t get to report. I bought 100 shares of Apple (AAPL) at $354.95 and sold the At-the-Money $355 Call. I’m leaning toward the At-the-Money Calls because the market has been moving so well I’m looking for a little profit taking. The At-the-Money Calls give me the nice premiums. Plus, at this time I really want to get assigned.

Buy 100 Shares AAPL @ $354.95

Sell to Open 1 AAPL 6/26/20 $355.00 C @ $4.70 (+$470)

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Also, yesterday I bought 2000 shares of Peloton (PTON) at $53.95. After I bought the stock it dropped a little and I didn’t get my Call sold. This morning I did. I sold 20 contracts of the PTON 6/26/20 $54.00 C @ $2.15. I won’t make much on assignment but the $4300 premium is unbelievable. The stock has been receiving a lot of upgrades so I plan on getting assigned.

Buy 2000 Shares PTON @ $53.95

Sell to Open 20 PTON 6/26/20 $54.00 C @ $2.15 (+$4300)

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I owned 1000 shares of Nutanix (NTNX) at $23.65. Last week I sold the $23.50 Call and was not assigned. Today I sold another $23.50 Call for a 60¢ premium. If assigned I’ll lose 15¢ on the stock. No big deal! I liked the $23.50 premium.

Sell to Open 10 NTNX 6/26/20 $23.50 C @ 60¢ (+$600)

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Same as NTNX, I owned 300 shares of Skyworks Solution (SWKS) from last week. I got another $130 Call sold for a $1.50 premium.

Sell to Open 3 SWKS 6/26/20 $130.00 C @ $1.50 (+$450)

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This next trade in the only trade that isn’t a Risk Factor 1. I hope it wasn’t a mistake. It’s a Naked Call with PTON. PTON is a very hot stock and it’s been moving crazy. And it’s up another $3 as I write. I’m hoping there will be a little profit taking and not get to my Strike Price of $58. I sold 10 contracts of the PTON 6/26/20 $58 Naked Calls for a premium of 75¢. Right now, the way it’s moving it looks like I might have to Cover. I’ll watch this Call very closely. This trade gets a Risk Factor 5. This is a very dangerous trade and it’s not for Grasshoppers. I will place a “Buy Stop” order at $57.50 which will automaticlly buy the 1000 shares if the stocks continues up to that price. As I write the stock is at $56.

Sell to Open 10 PTON 6/26/20 $58.00 C @ 75¢ (+$750)

I made this Naked Call trade with PTON because of the way it’s been moving. If there’s a little pull back this position will give me a little hedging on the 2000 shares I own.


Well, there you have it! A very busy morning. I think this will shape up to be another very good week.

I still didn’t get filled on my UAL order, and it doesn’t look like I will. I’ll try again tomorrow. For the rest of the day I’ll leave my order in place. If I get filled I’ll let you know.

Successful trading,

Steve

The Options Coach