Filled on 5 DKNG Calls

I bought 500 shares of Draftkings (DKNG) on 7/21 at $38.10. The stock is struggling a bit because of the uncertainty with pro sports. To get a Call sold I went with the $38 Call. If I get assigned I’ll lose 10¢ per shares on the 500 shares. The 40¢ premium for $200 doesn’t sound like much but it is a 1% return for the 4 day Call. This trade fits into my “1 Week/1%” strategy.

7/28/20 – Sell to Open 5 DKNG 7/31/20 C @ 40¢ (+$200)

If I get assigned I’ll lose $50 on the stock sale bit I still give this trade a Risk Factor 1.

I also own another 500 shares at $41.50. It’s gonna be tough to get a Call sold on these shares because the stock’s at $35. I might go out a week or 2 to bring in a premium.

Successful trading,

Steve

The Options Coach