Covered Call With Pinterest Expiring Today

Pinterest (PINS) came out with earnings and it looks like it can become the next big social media platform. Today the stock is up over 30% with better than expected earnings and a 39% jump in monthly users.

With 2 hours left to the trading week I just bought 1000 shares and sold a 10 contract Call. I brought in a $500 premium. If I get assigned this will be a great end of week trade, 1.5% in 2 hours. If I don’t get assigned, hopefully the stock continues to move next week and I get another Call sold. Either way I keep the $500 premium.

7/31/20 – Buy 1000 Shares PINS @$33.00 

7/31/20 – Sell to Open 10 PINS 7/31/20 $33.00 C @ 50¢ (+$500)

This is a Covered Call on a stock that came out with great news so it gets a Risk Factor 1.

Successful trading,

Steve

The Options Coach