Sold Calls on My Peloton Shares

We are having a tough week! It’s times like this when traders have to get creative and continue to bring in money.

I own 1000 shares of Peloton at $132.50 and 1000 shares at $139. The stock is down on this down week but I was able to get (2) 10 contract Calls sold I’m happy with.

I didn’t like the premiums for the Calls expiring this Friday so I looked into next Friday, Nov 6th. It’s only 10 day away but Peloton reports earnings on Thursday, Nov 5th. This makes the premiums very nice for the next Friday expiration.

The shares I bought at $132.50 I sold the $135 Calls. I received a premium of $5 for $5000. If the earnings are good the stock will go up. I will not mind getting assigned at $135. I’ll make $2500 on the stock sale and keep the $5000 premium. I would love this to happen!

Sell to Open 10 PTON 11/6/20 $135.00 C @ $5.00 (+$5000)

My other shares that I bought at $139 I sold the $140 Calls. For this Call I received a premium of $3.50 for $3500. If I get assigned on both of these Calls, next Friday will be a nice payday.

Sell to Open 10 PTON 11/6/20 $140.00 C @ $3.50 (+$3500)

Both of these trades gets a Risk Factor 1. Whether I get assigned or not next Friday should be a good day.

Successful trading,

Steve

The Options Coach