Grasshopper Trade With Inseego

I just bought 100 shares of Inseego (INSG) at $19.60 and sold a 1 contract Call. I sold 1 INSG 2/19/21 $20 Call for a premium of $1 for $100.

Buy 100 Shares INSG @ $19.60

Sell to Open 1 INSG 2/19/21 $20.00 C @ $1.00 (+$100)

This trade goes out to next Friday because it only has monthly options. I would like to get assigned. If not my next option would go out to 3/19. Getting a $1 premium for a $19.60 stock is a return of 5.1$ return for the premium only. If assigned I’ll make another $40 on the stock sale. If assigned my return will be 7.1%.

This trade gets a Risk Factor 1.

It’s all about the return!

For another Grasshopper trade I also bought 100 shares of LX at $11.25. I have an order to sell a 1 contract of the 2/19/21 $12.50 Call for a premium of 45¢. I’ll let you know if I get filled. This will be a 4% return for the premium only.

Successful trading,

Steve

The Options Coach