Filled on My PTON “Buy Stop” Order

Earlier this week I bought 2000 shares of Peloton (PTON) at $53.95 and sold 20 $54 Calls. I also sold a Naked $58 Call as hedging. Along with this Naked Call I placed a “Buy Stop” order at $57.50. This was too protect my Naked Call. If the stock got up to $57.50 1000 shares would automatically be bought to make a Covered Call. This “Buy Stop” order was to prevent the Naked Call from going In-the-Money. The strategy worked!

Buy 1000 Shares of PTON @ $57.50

My Naked Call is now Covered and it will expire tomorrow. I’m hoping the stock continues up and I get assigned. This Naked Call was a Risk Factor 5 but now that I’m covered the position is now a Risk Factor 1.

Successful trading,

Steve

The Options Coach