Grasshopper Trade With WKHS

With Workhorse way down I just bought 100 shares of the stock at $15.50 and sold a 1 contract Call. I sold 1 WKHS 2/26/21 $16 Call for a premium of  55¢ for $55.

Buy 100 Shares WKHS @ $15.50

Sell to Open 1 WKHS 2/26/21 $16.00 C @ 55¢ (+$55)

I think this will be a very nice 1 day Grasshopper trade. The premium is a return of 3.5%. If I get assigned I’ll make another $50 on the stock sale. This is a low priced stock so you can make this trade with as many shares as you can afford to lose. However, I think it’s a winner. This trade gets a Risk Factor 1.

Successful trading,

Steve

The Options Coach