Sold a 10 Contract Call with Peloton

I own 1000 shares of Peloton (PTON) at $72.25. 2 days ago, on the 18th,  I sold a 10 Contract 8/21/20 $72 Call to make a Covered Call. This expires tomorrow. I do not think PTON will get to $72 by tomorrow. With the stock up today I just sold another 10 contracts to expire next Friday. This Call gave me a nice premium of $1200.

Sell to Open 10 PTON 8/28/20 $72.00 C @ $1.20 (+$1200)

Since the Covered Call I have going involves the 1000 shares I own, this Call I just sold is Naked. It will remain Naked until the end of tomorrows session. If I am right, and PTON does not get to $72 before the close tomorrow, the shares will cover the Call I just sold.

I just wanted to get a jump on next week’s income. With 9 days to expiration for this new Call I was able to get a very nice premium of $1.20. At the moment, and for the next day, this Call will be Naked. This trade will have a Risk Factor 5 until the close tomorrow. If, as predicted, I do not get assigned on my current Covered Call, this new Call will become covered and the risk factor will become a 1.

Any questions, send me an email.

Successful trading,

Steve

The Options Coach