Palantir Grasshopper Trade
“The Grasshopper Field” is set up pretty nice this week. I already have Covered Calls sold with NOK, M, OXY, (2) Calls with X, and I was just filled on a 2 contract Call with Palantir (PLTR). All to expire this Friday. “The Grasshopper Field” stocks should do well this week.
I bought 200 Shares of PLTR at $24.25 and sold 2 PLTR 6/7/21 $24.50 Calls for a premium of 50¢. This Call will give me a total of $100.
Buy 200 Shares PLTR @$24.25
Sell to Open 2PLTR 6/11/21 $25.00 C @ 50¢ (+$100)
The premium is a Return of 2%. For me this is perfect, and I hope it is for you too. This Covered Call gets a Risk Factor 1.
While I’m here I report a few “Master” trades. From here forward when reporting my larger trades I’ll Call them “Master Trades.” I made a Master Trade with Peloton. It’s a 10 contract Covered Call. I previously owned the 1000 shares at $108.75.
Sell to Open 10 PTON 6/11/21 $109.00 C @ $2.25 (+$2250)
This PTON is a Covered Call on Previously owned stock and it gets a Risk Factor 1.
I also sold a 10 Call with PENN. I have this listed as a Naked Call but It’s actually covered with a LEAPS option I own.
Sell to Open 10 PENN 6/18/21 $91.00 C @ 85¢ (+$850)
As you see this Call expires next Friday, the 18th. If the stock approaches my Strike Price of $91 I’ll buy the shares. This trade gets a Risk Factor 4 because I’m treating it as a Naked Call.
You can see all my trades on the Active Trades page. Both Grasshopper Trades and Master Trades.
Successful trading,
Steve
The Options Coach