Sold 4 MOMO Calls

Back on 3/1 I bought 200 shares of MOMO at $16.75 for “The Grasshopper Field.” I’ve been selling Calls every week bringing in nice premiums. With everything else the stock dropped back in the last week. Since the stock dropped I can no longer get a good premium for the 1 week Calls. On 3/25 I bought another 200 shares at $13.75. I now own 400 shares at an average of $15.25.

I just sold a 4 contract Covered Call to expire on 4/16, a little over 2 weeks away. I sold 4 MOMO 4/16/21 $15.50 Calls for a premium of 35¢ for $140.

Sell to Open 4 MOMO 4/16/21 $15.50 C @ 35¢ (+$140)

 

I think this is a good Grasshopper Trade and it gets a Risk Factor 1. The 35¢ is a return of 2.3% for the 18 day trade. This is not bad considering my 1st 200 shares are down about $2 from where I bought. Citi gave MOMO an upgrade to a “Buy” and if this market moves a little I think I’ll get assigned. For the new readers, I like to get assigned on my Covered Calls. I take my profit that I signed up for and move on.

 

Successful trading,

Steve

The Options Coach