Sold a 10 Contract Naked Call With PayPal

PayPal (PYPL) is up big today on the news that they will be accepting Bitcoin for payments. With the stock at $213.50, up $11, I sold 10 10/23/20 $222.50 Calls for a premium of 50¢ for $500.

Sell to Open 10 PYPL 10/23/20 $222.50 C @ 50¢ (+$500)

This is a big day for the stock, I don’t think it will continue up at this pace and get to my Strike Price of $222.50 by this Friday. If it does, or we get a big pop on a stimulus deal, I buy the shares to cover this Naked Call. I’ll be watching closely!

Successful trading,

Steve

The Options Coach