At-the-Money Grasshopper Trade with Macy’s

For my 1st trade of the week I just did an At-the-Money Covered Call with Macy’s (M). I bought 200 shares of M at $17 and sold 2 M 4/30/21 $17 Calls for a premium of 45¢ for $90.

 

Buy 200 Shares M @ $17.00

Sell to Open 2 M 4/30/21 $17/00 C @ 45¢ (+$90)

I did an At-the-Money Call for the premium only. I received a 45¢ premium for a 2.6% return on my $17 investment. I sold the Call At-the-Money because I wanted the bigger premium, plus it gives me a better chance to get assigned. This trade gets a Risk Factor 1. If I can make a trade like this  for a 2.6% return with only a $90 gain, so can you.

 

Successful trading,

Steve,

The Options Coach