Grasshopper Trade With Nio, and More
I bought 100 shares of NIO for “The Grasshopper Field” at $63.75. I bought the shares on 1/11/21. So far I sold Call 3 weeks in a row without assignment. Today I sold my 4th Call.
This happens! Many times you buy a stock, sell Calls, and don’t get assigned. But, guess what? Many traders don’t want to get assigned. Getting assigned is my strategy but it might not be yours.
A close friend of mine, and Main Street beats Wall Street, loves NIO. He’ll do anything to not get assigned. In fact, he loves the stock so much I tell him it might be better if he doesn’t even sell Calls; but he also loves the premiums.
Once you learn how the mechanics of options work you will develop your own philosophy and strategy that fits into your risk tolerance. I like to get assigned and I sell my Calls accordingly.
Today I sold another Call against the original 100 shares I bought for “The Grasshopper Field.” In the last few weeks I brought in the premiums of $200, $50, $200 and today $100. This is a total of $550. So far I have a return of 8.6% in 3 weeks. I just sold 1 NIO 2/12/21 $64 Call for a premium of $1 for $100
Sell to Open 1 NIO 2/12/21 $64.00 C @ $1.00 (+$100)
To get this premium I went out to next Friday with the Expiration Date.
I also own 1000 shares of NIO at $65.40 in my main trading account. I was also filled on a 10 contract Call. I sold 10 NIO 2/12/21 $66 Call for a premium of 75¢ for $750.
Sell to Open 10 NIO 2/12/21 $66.00 C @ 75¢ (+$750)
Both of these NIO trades get a Risk Factor 1.
On 1/11/21 I bought 200 shares of Tesla at $840.75 and have been selling Calls. Yesterday I sold a 2 contract of the $845 Calls expiring this Friday. I received a premium of $2400. After I sold these Calls the stock received a price target rise to $1200. It moved a lot yesterday and it continues today. I will get assigned on my $845 Call with an Opportunity Lost.
This morning I bought another 100 shares at $867.
Buy 100 Shares TSLA @ $867.00
AS I write the stock is up $34 and it’s at $874. I placed an order to sell 1 contract of the TSLA 2/5/21 $890 Calls for a premium of $15.
Right now the premium is at $10 so the stock has to move more for me to get filled. I’ll watch it to see if I want to lower the premium in my order or just hold the stock and see where it goes. Stay tuned!
Successful trading,
Steve
The Options Coach