Grasshopper Trades to Report
Last week I had Covered Call Grasshopper trades with NIO, Workhorse and Palantir. I was not assigned on any of the trades. I bought 100 shares of NIO at $63.75, 100 shares of WKHS at $25 and 100 shares of PLTR at $25.95.
You can take a look at the trades at Grasshopper Trades. Look under Week Ending 1/15/21.
I just made another trade on each of these stocks for this week’s Grasshopper trades.
NIO
Last week I got a premium of $2. This week I only got 50¢. There are 2 reasons why this week’s premium is much lower. #1, the stock dropped back on Friday. It’s bouncing back nicely today. And #2, this is a short week. I could have gone out to next week with the Expiration Date for a better premium, but I figured let me get through this short week with this premium and hopefully the stock continues up and I get a better premium next week.
With my trading account I sold 10 $66 Calls. With this I went out to next week because in that account I spent more for the stock and I had to go with the $66 Strike Price. The $66 Call for this week was a very low premium.
Sell to Open 1 NIO 1/22/21 $64.00 C @ 50¢ (+$50)
This return is under 1$ but I made nice money last week and hope to get another nice return next week.
Workhorse
With my 1 contract WKHS Grasshopper trade I went out to 1/29, next week. I didn’t like the premium for this week and I got a nice one for next week. $1.05 is nice for a $25 stock. This is a return of 4.2% for the 2 week trade.
Sell to Open 1 WKHS 1/29/21 $25.50 C @ $1.05 (+$105)
Palantir
With Palantir I sold the 1 contract to expire this week. I received a premium of 95¢. This is a 3.6% return in the 4 days remaining to the week.
Sell to Open 1 PLTR 1/22/21 $27.00 C @ 95¢ (+$95)
All of these trades are Covered Calls on previously owned stock so they all get a Risk Factor 1.
Any questions on these Grasshopper trades send me an email.
Successful trading,
Steve
The Options Coach