Grasshopper Report 1/29/21

This is the Grasshopper trades weekly results for week ending 1/29/21.

With a bad week for the markets it was OK for our Grasshopper trades. We had 4 trades come to an end and 2 were assigned.

Again we were not assigned on our NIO Call but we have been taking in some nice premiums. Hopefully this will continue.

The other position not assigned was U S Steel (X). It’s down about $1 from where I bought. This was a tough week for a lot of stocks. Hopefully X will recover and I get another Call sold this week.

To be in all of the positions below it cost me about $13,600. I locked in $646. This is a Return on Investment (ROI) of 4.75%. I will not complain about this. If I did this every week it would be 247% for the year.

Remember, Grasshoppers, It’s all about the Return on Investment, not the amount of money.

U S Steel

Covered Call without assignment.

1/25/21 – Sell to Open 1 X 1/29/21 $19.00 C @ $1.15 (+$115)

1/29/21 – Expired 1 X 1/29/21 $19. 00

Profit +$115

NIO

Another Covered Call without assignment. This premium is 3% of my purchase price of $63.75.

1/25/21 – Sell to Open 1 NIO 1/29/21 $65.00 C @ $2.00 (+$200)

1/29/21 – Expired 1 NIO 1/29/21 $65.00 C

Profit +$200

Alpha Pro Tech

A 1 week trade with assignment. I made $76 on the stock sale and the $100 premium. The $176 gain on the $1362 invested is a 12.9% return for this 1 week trade..

1/21/21 – Buy 200 Shares APT @ $13.62

1/29/21 – Assigned 200 Shares APT @ $14.00

Profit +$76

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

1/29/21 – Expired 2 APT 1/29/21 $14.00 C

Profit +$100

Workhorse

WKHS closed at $34.32. This gave me a huge Opportunity Lost. This is $8.82, or $882 I didn’t make because I sold an option. I ended up making $155 on the $2500 investment. A return of 6.2%. This is a great 1 week return!

The bottom like is, if you cannot handle the Opportunity Lost don’t sell Calls. If you pick this road you are a buy and hold investor. That’s OK, but remember the S&P was up 16% last year. With my strategy I was up 220%. You must be able to handle the Opportunity Lost to be an options trader.

1/13/21 – Buy 100 Shares WKHS @ $25.00

1/29/21 – Assigned 100 Shares WKHS @ $25.50

Profit +$50

1/19/21 – Sell to Open 1 WKHS 1/29/21 $25.50 C $ 1.05 (+$105)

1/29/21 – Expired 1 WKHS 1/29/21 $25.00 C

Profit +$105

Total Weekly Gain +$646

I hope everyone is learning with the Grasshopper trades. This week is a great example of what you can do with a smaller account, or even if you have a larger account, while you learn.

Enjoy the weekend!

Successful trading,

Steve

The Options Coach