Out of My Peloton Naked Call

A few hours ago I sold 10 Peloton (PTON) Naked Calls. These Calls were to expire next Friday, Oct 2nd. Naked Calls always come with a certain amount of risk. Most readers know my rule. If I can get out of a Naked Call position the same day, keeping half of what I signed up for, I do a “Buy to Close” to lock in the profit. I sold the 10 contracts for a premium of $1.20 ($1200) and I did a “Buy to Close” with the premium at 60¢ ($600) locking in the profit of $600 in a few hours.

9/23/20 – Sell to Open 10 PTON 10/2/20 $114.00 C @ $1.20 (+$1200)

9/23/20 – Buy to Close 10 PTON 10/2/20 $114.00C @ 60¢ (-$600)

 Profit +$600

This money is in my mattress!

Successful Trading,

Steve

The Options Coach