Entered a PTON 20 Contract Covered Call

It took me a while to get filled on a 20 contract Covered Call but it did happen. About 2 hours ago I entered 2 trades. One to buy 2000 shares of Peloton (PTON) at $59.90 and  another to sell a 20 contract PTON 7/10/20 $60 Call for $2.

I got filled on the Call first. It did get a little scary because after I was filled on the Call the stock went up another dollar. At this point I had a 20 contract Naked Call. I did have full confidence the stock would fluctuate back down, and it did. A few minutes ago I was filled on the buying of the 2000 shares at $59.90.

Buy 2000 Shares PTON @ $59.90

Sell to Open 20 PTON 7/10/20 $60.00 C @ $2,00 (+$4000)

PTON has been the source of a lot of money for me over the last few weeks. Let’s hope this one works out the same way. If I get assigned this position will make me $4200.

PTON is one of the few “COVID” stocks. I think it will be a good stock to play for a while.

As I write PTON is moving lower. If I waited a little longer I would have gotten the stock a little cheaper. No problem! Not too often will you enter positions at the perfect time.

This is a Covered Call on a very hot stock so it gets a Risk Factor 1.

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Earlier I sold a 1 contract LEAPS on AAPL. The option activity is going wild with Microsoft (MSFT). With the profit from the AAPL lEAPS I bought a 2 contract LEAPS with MSFT. I only want to be in this position for 2 or 3 weeks.

Buy to Open 2 MSFT 1/15/21 $210.00 C @ $18.75

If you want to see all the LEAPS I’m holding you will see them at the bottom of my Active Trades/Current Positions page.

Successful trading,

Steve

The Options Coach