Peloton Trade and Grasshopper Trade With MOMO

I made a Grasshopper trade with MOMO and a 20 contract trade with Peloton (PTON).

These 2 trades are very similar to last week’s. The MOMO trade is the same as last week. I own 200 shares of MOMO at $16.75 and I just made the same trade as last week. I sold 2 MOMO 3/12/21 $17 Calls for the same 40¢ premium for $80. I know it’s not a lot of money but it’s a good Grasshopper Trade. It’s a 2.3% return on the money I invested. This is a great trade to learn how to concentrate on the return and not the money brought in.

Sell to Open 2 MOMO 3/12/21 $17.00 C @ 40¢ (+$80)

This trade gets a Risk Factor 1.

My other trade was with PTON. The stock is down from my buy-in price so I went with a lower Strike Price again. On this trade I do not want to get assigned. In fact, I look at this as a Naked Call because that’s the way I’ll treat it. If the stock gets up to my Strike I’ll be buying more shares to deliver if assigned.

Sell to Open 20 PTON 3/12/21 $25.00 C @ 85¢ (+$1700)

This trade gets a Risk Factor 4.

 

Successful trading,

Steve

The Options Coach