I previously owned 2000 shares of Peloton (PTON) since 10/14. I have a 20 contract Call sold against these shares with the Strike Price of $135. These Calls will expire on 12/24.
In anticipation of not getting assigned on these shares I sold another 20 contract Call on PTON to expire 1/15. At the moment, and until 12/24, this 2nd 20 contract Call will be Naked.
Yesterday PTON was on a big run with the COVID lockdowns getting widespread. The stock opened at $118 and went up to a high of just under $125.
With the market nearing the close, and the stock still moving up, I had to leave my home and computer to get to my first physical therapy session on my shoulder. Yes, only 3 days after surgery I had to start working my shoulder. seems a little soon but I must follow my doctor’s orders.
Before I left I felt PTON would pull back into the close. I like the stock at this level so I decided to get in a little deeper if the stock pulled back. I placed an order to buy another 1000 shares at $124 if the stock dropped down to that level. When I returned home I noticed I was filled on my order. But to my surprise the stock dropped a little more than I thought it would. PTON closed at $121.91.
Buy 1000 Shares PTON @ $124.00
I’m not really worried about this stock. I think it will continue to move a while longer. I might sell a Call on these shares, or I might just hold to see how the stock moves until my 12/24 Calls expire.
Successful trading,
Steve
The Options Coach