Hi everyone. I am going to attempt my first “wheel strategy” on DKNG. I sold the 45 strike put expiring next Friday for $4.5. I sold 5 contracts because I want to own 500 shares if/when I’m assigned. I sold the puts when DKNG was trading at $42 today.
I think the current pullback is going to end soon (~1-2 weeks) so I’d like to take advantage of the high option premium by selling puts and calls. I want to get assigned so I sold in the money puts. Once I get assigned, I plan to sell calls roughly 1-2 weeks out at 10% above the trading price (making my position a covered call). Since earnings are in about 3 weeks, I plan to stop the strategy before then.
Daily chart of DKNG below:
Have a nice rest of your week!