Grasshopper Trade With APT

Alpha Pro Tech (APT) is in the business of protecting people, products and environments. The Company is engaged in developing, manufacturing and marketing a line of disposable protective apparel and infection control products for the cleanroom, industrial, pharmaceutical, medical and dental markets through its subsidiary, Alpha Pro Tech, Inc. Its products are grouped into three segments: Building Supply, which consists of construction weatherization products, such as housewrap and synthetic roof underlayment, as well as other woven material; Disposable Protective Apparel, which consists of disposable protective apparel, such as shoe covers, bouffant caps, gowns, coveralls, lab coats, frocks and other miscellaneous products, and Infection Control, which consists of face masks and eye shields. The Company also manufactures a line of building supply construction weatherization products through its subsidiary, Alpha ProTech Engineered Products, Inc.

With President Biden signing a mask mandate on federal property, and COVID-19 in full blown pandemic mode, I think APT can do well. I started watching APT about 8 months ago because of COVID but never did anything. Now with the new president I think this stock can move. For my Grasshopper trade I bought 200 shares and sold a 2 contract Call, but for you buy and hold investors I think it can be a nice play at this time.

I bought 200 shares at $13.62 and sold 2 APT 1/29/21 $14 Call for a premium of 50¢ for $100.

Buy 200 Shares APT @ $13.62

Sell to Open 2 APT 1/29/21 $14.00 C @ 50¢ (+$100)

Again, this doesn’t sound like a lot but it’s a Return on Investment (ROI) of 3.6%. This is a great 1 week return!

I did 200 shares for my Grasshopper trade but if someone has a smaller account you can always do 100 shares and sell a 1 contract Call.

This trade gets a Risk Factor 1.

Successful trading,

Steve

The Options Coach