Results Week Ending 6/4/21
This was another nice week for my account. However, I was not assigned on as many positions as last week. Last week I was assigned on 8 of 8 positions.
I brought is some nice premiums and my account is recovering from the market of Feb, March and Apr. So many stocks are off their highs, even with the DOW & NASDAQ near their all time highs.
As a reminder, and for the new readers, I only post the Grasshopper Trades. New readers please read all pages of “The Grasshopper Field.” The Grasshopper Trades are posted with a short explanation; my larger trades are listed on my Active Trades/Current Positions page as I make them. They come with a post only if there is something different about the trade and a lesson to be learned from the trade. When you look at my larger trades on the Active Trades page you can email me any questions you may have. Hopefully soon I will have my Discord channel up and running. This will make it so you get my trades, all my trades, sent directly to your phone, immediately! I’m a one man operation so things move a little slow lol.
I’m very happy with the way “The Grasshopper Field” is going. We are now about 5 months in with this new section and it’s doing well. I have not had problems bringing in my 1 or 2% per week. New traders must concentrate on these types of trades. Don’t get greedy, just learn. Once you have a larger account this 1 or 2% per week will be a very nice income for you. You must always remember Wall Street is not a “Get Rich Quick” scheme. You look at all the top traders in the world, they bring in between 10 and 30 percent a year. If you work on the 1 or 2% per week you will have great years as a trader.
Below on my Workhorse trade I indicated that it was an At-the-Money Covered Call. When I make a Covered Call trade and it is At-the-Money or In-the-Money, and I get assigned, I indicate it when I post my results. I do this because with an At-the-Money Covered Call I will not make money on the stock on assignment. I will sell the stock at the same price I bought the stock. I’m in this position for the premium only. And with an In-the-Money Covered Call I will lose money on assignment.
Example: I buy a stock at $25.50 and sell the $25 Call. This is In-the-Money. With assignment I’ll sell the stock at $25 after buying it for $25.50. I like to do this when I see an opportunity to get a very large premium that will easily make up for the 50¢ I’m losing on the stock. Plus it gives me a much better chance to get assigned. If you have any questions on this strategy send me an email.
Here are the Grasshopper Trades of the week. For the bigger trades go to me Active Trades page.
U.S. Steel
This was a Covered Call but I was not assigned.
5/28/21 – Sell to Open 2 X 6/4/21 $27.00 @ 45¢ (+$90)
6/4/21 – Expired 2 X 6/4/21 $27.00 C
Profit +$90
This premium was a 1.7% return and I already sold another Call to expire next week. For this new Call I received a premium of 75¢.
U.S. Steel
This was an At-the-Money Covered Call because I bought the stock at $26.50 but I was not assigned.
5/28/21 – Sell to Open 2 X 6/4/21 $26.50 C @ 55¢ (+$110)
6/4/21 – Expired 2 X 6/4/21 $26.50 C
Profit +$110
With this trade I received a premium of 2%. I also sold another At-the-Money Call on these shares late on Friday. I received 75¢ on this also. This 75¢ is a return of 2.8%.
U.S. Steel
I was busy with U.S. Steel this week. This last trade was also not assigned.
6/1/21 – Sell to Open 2 X 6/4/21 $28.00 C @ 30¢ (+$60)
6/4/21 – Expired 2 X 6/4/21 $28.00 C
Profit +$60
NIO
I made this 1 contract Covered Call Grasshopper Trade with NIO and I was assigned.
6/1/21 – Buy 100 Shares NIO @ $40.90
6/4/21 – Assigned 100 Shares NIO @ $41.00
Profit +$10
5/28/21 – Sell to Open 1 NIO 6/4/21 $41.00 C @ 40¢ (+$40)
6/4/21 – Expired 1 NIO 6/4/21 $41.00 C
Profit +$40
I bought 100 shares of NIO at $40.90. This is $4090. I made a total of 50 bucks. Is it a lot? NO! But I put 4 grand to work and brought in a return of 1.2% in 3 days. The 50 bucks might not thrill you but the 1.2% better. If not, get out of this game. If I made this trade once a week for a year it would be a return of 62%. And I am doing this every week! Not with the same stock but with some stock! This is the way I look at this game. Take a look at any investor’s records, are they doing 62% a year? NO! Not even Warren Buffet. I didn’t do less than 62% in the last few years. Again the 50 bucks is no big deal, but that’s with a $4K trade. Stick with the plan, you will be very happy in the future.
Workhorse
At-the-Money Covered Call
This At-the-Money Covered Call was a great deal. I bought the stock at $11 and sold a Call getting a premium of 70¢. That’s a return of 6.3% for the premium only.
6/2/21 – Buy 200 Shares WKHS @ $11.00
6/4/21 – Assigned 200 Shares WKHS @ $11.00
Profit +0
6/2/21 – Sell to Open 2 WKHS 6/4/21 $11.00 C @ 70¢ (+$140)
6/4/21 – Expired 2 WKHS 6/4/21 $11.00 C
Profit +$140
This is a very nice premium but you must be very careful with these large premiums. The large premiums are caused by volatility. A volatile stock can cause big problems. I got away with it here!
Total Weekly Gain +$450
My Grasshopper Trades make $450 in premiums and my entire account did $5715 in premiums. A lot of my stocks have been recovering the last few weeks so my account is starting to look better.
Have a great weekend!
Successful trading,
Steve
The Options Coach