Nikola Grasshopper Trade and Much More!

This is one of those crazy busy mornings. I have a lot of stock positions because I wasn’t assigned on anything this past Expiration Date. I was filled on some Call orders and still waiting to get filled on others.

Let’s start with the Grasshopper Trade with Nikola (NKLA). I like the price and I like the candlesticks positioning with the Bollinger Bands. I didn’t only make a 1 contract Grasshopper Trade, I also made a 10 contract trade in my trading account. I bought the stock at $18.80 and sold the $19 Calls.

NKLA Grasshopper Trade

Buy 100 Shares NKLA @ $18.80

Sell to Open 1 NKLA 3/5/21 $19.00 C @ 60¢ (+$60)

The trade I made in my account is the same trade.

Buy 1000 Shares NKLA @ $18.80

Sell to Open 10 NKLA 3/5/21 $19.00 C @ 60¢(+$600)

These NKLA premiums are 3.1%.

I previously owned 1000 Shares of Draftkings at $63.70. The stock is up big today! I sold 10 DKNG 3/5/21 $67 Calls for a premium of $2 for $2000.

Sell to Open 10 DKNG 3/5/21 $67.00 C @ $2.00 (+$2000)

This is a 3.1% premium.

Last week I sold a $64 Put on Netapp (NTAP). The stock closed at $62.60 so I had 1000 shares put to me at $64. The stock is up today so I sold a 10 contract Call. I sold 10 NTAP 3/5/21 $64.50 Calls for a premium of $1.25 for $1250.

Sell to Open 10 NTAP 3/5/21 $64.50 C @ $1.25 (+$1250)

This is a 1.9% premium.

Looking at the charts I feel Tesla is about to move. It’s up $30 as I write. I bought 200 shares at $704 and sold a 2 contract Call. I sold 2 3/5/21 $707.50 Call for a premium of $21.50 for $4300.

Buy 200 Shares TSLA @ $704.00

Sell to Open 2 TSLA 3/5/21 $707.50 C @ $21.50 (+$4300)

This is a 3% premium.

All of the trades above are Risk Factor 1. I’m not sure what the market is going to do this week so I went with Strike Prices to get assigned. I’ll make a little less on the stock but I received nice premiums.

The above trade, in addition to trade I made last week that will expire this Friday, will give me my weekly goal. The Covered Calls I had going from last week are with CREE, WKHS and SLV.

My account is going up and I have plenty in my margin buying power account to make more trades if I want. I’ll watch the market closely and make a decision. I’ll try to make another Grasshopper trade, or 2.

Successful trading,

Steve

The Options Coach