Nikola (NKLA) is on a big run today along with all the electric car makers. The stock was up as much as $4.50 but as I write it’s up $3.60. I don’t think it will continue up at this rate so I just sold a Naked Call. With the stock at $25.60 I sold 10 11/20/20 $29 Calls for a premium of 50¢ for $500.
Sell to Open 10 NKLA 11/20/20 $29.00 C @ 50¢ (+$500)
This Call is $3.50 In-the-Money so I feel safe but I’ll watch. Between tomorrow and Friday, if it approaches my Strike Price of $29 I’ll cover. All the electric car makers have been moving so this trade gets a Risk Factor 4.
Check out my last few trades here.
Successful trading,
Steve
The Options Coach