Nio Grasshopper Trade and More…
As you know I bought 100 shares of NIO at $63.75 on 1/11/21. I have been selling Calls against these shares ever since without assignment. I just sold another 1 contract Call for another Grasshopper Trade. I sold 1 NIO 2/19/21 $64 Call for a premium of $1 for $100.
Sell to Open 1 NIO 2/19/21 $64.00 C @ $1.00 (+$100)
This Call is against previously owned stock so the trade gets a Risk Factor 1.
I also own 1000 shares of NIO in my main trading account. I also sold a Call against these shares. I sold 10 NIO 2/19/21 $66 Calls for a premium of 65¢ for $650.
Sell to Open 10 NIO 2/19/21 $66.00 C @ 65¢ (+$650)
This trade also gets a Risk Factor 1.
The last few weeks I’ve been selling Puts on Xpeng (XPEV). With the stock in the area of $47 – 47.50 I was selling the $45.50 or $46 puts. Today the stock was below $47 so I decided to do a Covered Call this week. I bought 1000 shares of the stock at $46.90 and sold 10 contracts of the XPEV 2/19/21 $47 Call for a premium of $1.50 for $1500.
Buy 1000 Shares XPEV @ $46.90
Sell to Open 10 XPEV 2/19/21 $47.00 C @ $1.50 (+$1500)
I like this stock and I feel it’s a very low risk trade. The trade gets a Risk Factor 1.
I think this is a good start to the short week. I have a lot of Grasshopper Trades expiring this week. It should be a good week for “The Grasshopper Field.”
Successful trading,
Steve
The Options Coach