Sold 6 SLV Calls, 1 Being a Grasshopper Trade

Back in January and February there was a lot of talk about gold and silver because the government was printing money for the stimulus. There was talk of gold and silver spiking and the dollar losing value. On February 1st I bought 600 shares of SLV. 500 for my trading account and 100 as a Grasshopper Trade. Even with the stimulus silver didn’t move the way anticipated. In fact, SLV came down. I bought SLV at $26.60 and today it’s at $24.50. I’ve been selling Calls but not getting the premiums I want for 1 week options. Today I sold 6 SLV 5/21/21 $26 Calls for a premium of 25¢ for a total premium of $150.

The trade in my main account is a 5 contract Call and I made a 1 contract trade for “The Grasshopper Field.”

 

Sell to Open 5 SLV 5/21/21 $26.00 C @ 25¢ (+$125)

 

Grasshopper Trade

Sell to Open 1 SLV 5/21/21 $26.00 C @ 25¢ (+$25)

 

I’ll take these small premiums until the stock gets to my buy-in price and I get assigned. This trade gets a Risk Factor 2. I gave it a 2 because if I get assigned at $26 I’ll lose 60¢ on the assignment.

 

I really never saw a market like this. The DOW, NASDAQ and the S&P 500 are near their all time highs and it seems like most stocks are way off their highs. I know my stocks are! How about yours? It’s crazy! I’m gonna just keep plugging away selling Calls and hope my positions bounce back soon.

 

Successful trading,

Steve

The Options Coach