Added 200 Shares of MOMO to my Grasshopper Position.

The market is falling apart at the seams. Let’s hope we are getting close to a bottom and a bounce in stocks.

I own 200 shares of MOMO at $16.75. I have these shares in “The Grasshopper Field” and have been selling Calls against them for Grasshopper Trades. I’ve been taking in premiums of at least 2% for the last few weeks, and this week I brought in 3.5%. The stock is down, with everything else, and I’m a little worried about not getting a premium like this next week. I like MOMO so I decided to buy 200 more shares to lower my average price. I’m not a big fan of averaging down on a stock that’s falling apart, but I don’t think this stock will drop much further. I bought 200 shares of MOMO at $13.75.

 

Buy 200 Shares MOMO @ $13.75

 

My average price is now $15.25. If the stock comes up a little I can sell the $15.50 of $16 Strike Price.

I thought the sell-off would come a little earlier this year and not stick to the traditional “sell in May and go away.” I’m very happy I started stacking money on the sideline. If I didn’t, with me working on margin, I’d be in some trouble right now.

Market sell-offs happen all the time. You notice them a lot more when you’re invested. You must develop a stomach for the big swings. We don’t like them, we’ll never get used to them, but we must develop the tolerance to handle them. This will prevent us from making emotional decisions.

 

Successful trading,

Steve

The Options Coach