I was just filled on a trade at the close. I have a lot of things going with Peloton (PTON). And I own 4000 shares. With the stock up today I sold a 10 contract Naked Call to give me a little insurance if the stock pulled back. I sold 10 1/22/21 $170 Calls for a premium of $2.50. This gives me $2500 in insurance if the stock, and my shares, pull back.
Sell to Open 10 PTON 1/22/21 $170.00 C @ $2.50 (+$2500)
This is a Naked Call on a very good stock. I will watch this position very closely but it still gets a Risk Factor 5. You never know where this stock can go. If it moves up big overnight it could be very risky for a Naked Call. However, the stock closed at $156 and my Strike Price is $170 so I feel pretty safe.
Successful trading,
Steve
The Options Coach
God bless