Grasshopper Trade with Nikola & a Covered Call with Tesla

I’m on a nice run this morning. I was just filled on 3 trades. A 1 contract Covered Call with Nikola (NKLA), a 10 contract Covered Call with NKLA and a 2 contract Covered Call with Tesla (TSLA).

I bought 1100 shares of NKLA on 3/1/21 at $18.80. 100 shares for a Grasshopper Trade and 1000 for a trade in my main trading account. I was just filled on these 2 trades again. The stock sold off a bit so I went out to next Friday. Both the Grasshopper Trade and my 10 contract trade expire on 3/26/21 and have a Strike Price of $19. I received a 50¢ premium.

 

NKLA Grasshopper Trade

Sell to Open 1 NKLA 3/26/21 $19.00 C @ 50¢ (+$50)

 

The other trade was a 10 contract Covered Call.

 

Sell to Open 10 NKLA 3/26/21 $19.00 C @ 50¢ (+$500)

Both of these trades get a Risk Factor 1 and both have a Rate of Return of 2.6%.

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The big trade on this post is the Tesla trade. I bought 200 shares of Tesla on 3/1 at $704. I’ve been bringing in very nice premiums and I just brought in another. I sold 2 contracts of the TSLA 3/19/21 $720 Calls for a premium of $21 for $4200.

 

Sell to Open 2 TSLA 3/19/21 $720.00 C @ $21.00 (+$4200)

This trade gets a Risk Factor 1. Also, this 5 day position gets a $21 premium for a 2.98% return. That’s 2.98% on a lot of money hence the return of $4200. This position brings me to my weekly goal.

 

Successful trading,

Steve

The Options Coach