I just sold 10 contract Naked Calls with Square (SQ) and Peloton (PTON). I know that sounds crazy, but they are both 5 day trades and $10 Out-of-the-Money. With the huge day today I don’t see them moving at the same pace the rest of the week. I’m in these trades for the premiums only! If we get a stimulus package and the stocks pop more, I have plenty of space ($10) to buy the stocks to cover.
Square
Sell to Open 10 SQ 10/9/20 $190.00 C @ $1.60 (+$1600)
Peloton
Sell to Open 10 PTON 10/9/20 $118.00 C @ 80¢ (+$800)
I think both of these positions will expire without going above their Strike Prices. If they get close I’ll cover with the buying of the stocks.
I’ll be watching these closely. Remember, I also have Covered Calls with these stocks.
Successful trading,
Steve
The Options Coach