Grasshopper Trade with U.S. Steel

I’m just about to hop into my car to drive to Boston. About to shut down the computer I saw what I thought would be a good Grasshopper Trade. I bought 100 shares of U.S. Steel (X) at $24.25 and sold 1 contract of the X 4/9/21 $24.50 Call for a premium of 55¢ for $55.

 

Buy 100 Shares X @ $24.25

Sell to Open 1 X 4/9/21 $24.40 C @ 55¢ (+$55)

 

I was thinking of going with the $25 Call for a premium of 35¢ but I went with the lower Strike Price for the better premium and a better chance of getting assigned. This 55¢ is a Return on Investment (ROI) of 2.2% for a 3 day trade. If I get assigned I’ll make another 25¢ on the stock sale. This is a good Grasshopper Trade and it gets a Risk Factor 1.

If I make any more trades today it will be from the car.

 

Successful trading,

Steve

The Options Coach