Sold 10 Draftkings Calls

I own 1000 shares of Draftkings (DKNG) at $39.80. The stock is on the move and I was just filled on a 10 contract Call. I sold 10 8/28/20 $40 Calls for a premium of 85¢. I went out until next Friday for the bigger premium. If I went with this Friday I could only get 25¢. I figured let me get next week started.

Sell to Open 10 DKNG 8/28/20 $40.00 C @ 85¢ (+$850)

This is a Covered Call Call on previously owned stock so it gets a Risk Factor 1. I’m in the stock at $39.80 so this 85¢ is a Return on Investment (ROI) of 2.1% for an 11 day option. I’ll take it!

Successful trading,

Steve

The Options Coach