Grasshopper Trade With SLV

SLV is a silver Exchange Traded Fund (ETF). I’ve been involved in SLV many times, but not for a while. Today with Reddit influenced short squeeze silver is up 10%. I felt it was a good time to get reacquainted with the ETF.

Not only did I think it would be a good play for my main trading account, I also felt it would be a good Grasshopper trade.

For “The Grasshopper Field” I bought 100 shares at$26.60 and sold a 1 contract 2/5/21 $27 Call for a premium of $1.20 for $120.

Buy 100 Shares SLV @ $26.60

Sell to Open 1 SLV 2/5/21 $27.00 C @ $1.20 (+$120) 

I also bought 500 shares for my trading account and sold the same Call.

Buy 500 Shares SLV @ $26.60

Sell to Open 5 SLV 2/5/21 $27.00 C @ $1.20 (+$600) 

Both of these trades give a Return of 4.5% for the premium only. If I get assigned the return will increase.

Both of these trades get a Risk Factor 1.

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I’m holding Exxon Mobil (XOM) in the Double Dipping Portfolio of Wealth Builder. Today I sold a 5 contract Call and with the premium I bought another 4 shares.

If you are unfamiliar with Wealth Builder please read the pages. You can look at the portfolios at Wealth Builder Portfolios.

Successful trading,

Steve

The Options Coach