4 More Trades Today
I was teaching all day and trading while doing so. When I was filled on trades I didn’t have time to write the post. It’s 9pm, I just finished a late dinner, and I’m now reporting my trades.
I have 4 trades to report. 1 Grasshopper trade and 3 in my trading account. Let’s start with the Grasshopper Trade.
SLV
On 2/1/21 Bought 600 shares of SLV at $26.60. I got into SLV when Reddit was trying to move the silver market as it did with GameStop. Silver proved to be too big and they were not successful. With my 600 shares I sold a 1 contract Call in “The Grasshopper Field” and 5 contracts in my main account. SLV pulled back a little and I was not assigned. I sold another 1 contract Call as a Grasshopper Trade listed below. Because of the price of SLV I didn’t get much of a premium.
Sell to Open 1 SLV 2/26/21 $27.00 C @ 30¢ (+$30)
I also sold a 5 contract Call listed below.
Sell to Open 5 SLV 2/26/21 $27.00 C @ 30¢ (+$150)
Lexinfintech
I really like the stock. It’s a Chinese payment system used by the under 35 Chinese population. The stock only has monthly options so I decided to get another trade in because there’s an Expiration Date this Friday and not another until March 19th.
I bought 1000 shares at $14.06 and sold a 10 contract 2/19/21 $15 Call for a premium of 40¢ for $400. This is a return of 2.8% for the premium only.
Buy 1000 Shares LX @ $14.06
Sell to Open 10 LX 2/19/21 $15.00 C @ 40¢ (+$400)
Sundial Growers
When Reddit was getting involved in the pot growers I decided to have a little fun with a low priced stock. I bought the stock at $2.88 and I was hoping it would go to $400 lol. I sold a Call when I bought the stock and brought in a premium of $1500. With the stock down to $2 today I sold a Call going out 1 month. Because of the drop in price I went out that far for a better premium. I own 5000 shares so I sold 50 contracts of the 3/19/21 $3 Call for a premium of 50¢ for $2500. This is a return of 17.3%. The premiums are high because of the volatility. There are days this stock is trading 1 billion shares. This must be a favorite for the Day Traders.
Sell to Open 50 SNDL 3/19/21 $3.00 C @ 50¢ (+$2500)
This trade gets a Risk Factor 3. This stock was at 50¢ about 2 weeks ago. I took a shot because of the stock’s low price.
The 2 SLV trades and the LX trade get a Risk Factor 1.
Successful trading,
Steve
The Options Coach