Made a 10 Contract and a Grasshopper Trade with CLF
Cleveland-Cliffs (CLF) is a vertically integrated producer of iron ore and steel products. It’s on Wall Street’s list of companies that might do well if the infrastructure bill goes through. I’ve made trades with the stock before so I decided to do a Covered Call for a nice return on the low priced equity. I made a 10 contract trade in my trading account, in addition to making a 1 contract trade in “The Grasshopper Field.” I bought 1100 shares at $18.10 and sold a 10 contract Call, plus the 1 contract Call. I sold the CLF 4/30/21 $18.50 Calls for a premium of 40¢. This trade fits into my “1 Week/1%” strategy. However, I received a return of 2.2%.
Buy 1100 Shares CLF @ $18.10
Sell to Open 10 CLF 4/30/21 $18.50 C @ 40¢ (+$400)
Grasshopper Trade
Sell to Open 1 CLF 4/30/21 $18.50 C @ 40¢ (+$40)
This trade gets a Risk Factor 1.
You Grasshoppers might want to look into Cleveland-Cliffs.
As I was writing I was filled on another trade.
On 4/19 I bought 500 shares of Roblox (RBLX) at $77.50. At that time I sold a Call but wasn’t assigned. The stock dropped back $10 but today it’s fighting back. With the stock at $74.50 I was filled on a 5 contract Call. I sold 5 RBLX 4/30/21 $77.50 Calls at $1 for $500. I bought the stock at $77.50 so this is an At-the-Money Call.
Sell to Open 10 RBLX 4/30/21 $77.50 C @ $1.00 (+$500)
This trade also gets a Risk factor 1.
Successful trading,
Steve
The Options Coach