Grasshopper Trade Not for Grasshoppers

Reddit is causing more volatility in the market. This time it’s with the pot growers. I decided to take a flyer with the lowest priced pot stock and see what happens. I made a trade with Sundial Growers (SNDL). Believe it or not the stock traded over 2 billion shares today. I never saw anything like this before. I checked the options and they have a premium of 20.8% for the At-the-Money Calls. I bought 5000 shares at $2.88 and sold 25 2/12/21 $3 Calls for 60¢ for $1500. I left 2500 shares with no Calls sold against them to see what happens tomorrow.

Buy 5000 Shares SNDL @ $2.88

Sell to Open 25 SNDL 2/12/21 $3.00 C @ 60¢ (+$1500)

I’m giving this trade a Risk Factor 4. I have no idea where this stock can go. Therefore this is not a Grasshopper trade, but it’s at Grasshopper trade numbers.

Wish me luck!

Successful trading,

Steve

The Options Coach