Grasshopper Trade with Workhorse

Had a busy day today, yesterday also!

Yesterday I was trading but at 2pm I had my last doctor’s appointment after my shoulder. It’s been 6 months. I placed a few trades before I left and I figured I’d come home and write a report on any that were filled. On the way home from the doctor I got a call from my wife telling me her car broke down. She came out of a store and it wouldn’t start. I headed to her and by the time I got home the market was closed. I didn’t even have time to check if trades were filled because I had to head out to a political fundraiser. Got home from that and went to bed.

Today started in the usual way with the market. I noticed I was filled on some trades from yesterday. Still didn’t have time to write the post reporting the trades because I was looking for new trades and entering them. Then I remember I had to go and deal with my wife’s car that was in a store parking lot. Before I left I bought 200 shares of Workhorse (WKHS) at $11 and entered an order to sell an At-the-Money $11 Call.

When I got home the market was closed and I was filled on the WKHS Call. I sold 2 contracts of the WKHS 6/4/21 $11 Call for a premium of 70¢ for $140. The way the market’s been moving I went with the At-the-Money Call for the bigger premium and a better chance to get assigned.

Buy 200 Shares of WKHS @ $11.00

Sell to Open 2 WKHS 6/4/21 $11.00 C @ 70¢ (+$140) 

I wanted to make this trade with WKHS because the EV stock have been moving. WKHS has been very weak so I went with the At-the-Money Call. I entered the trade with the stock at $11. If I was home I might have gone with a higher Strike Price because the stock closed at $11.52. Not only did it close much higher but it’s up $1.80 in the after market. No big deal. It looks like I’ll get assigned at $11 making no money on the stock but the 70¢ is a return of 6.3%. If I get assigned this will be a great deal.

Yesterday while I was away from my computer I was also filled on a few NIO and  U.S. Steel Grasshopper Trades. Please go the Grasshopper Trades and look at the trades that will be expiring this Friday. There are 5.

I also was filled on a few larger trades. You can go to my Active Trades/Current Positions page. You can look at all the trades expiring on 6/4/21.

I’m sorry I didn’t get these trades out as I made them but sometimes I get busy with homeowner and family things.

 

Successful trading,

Steve

The Options Coach