Made 3 Grasshopper Trades

I made Grasshopper Trades with 3 stocks I’ve been in for a while and are way below my buy-in price. To get decent premiums I went out a few months with my Expiration Date.

I bought 200 Shares of 3 D Systems (DDD) on 6/30/21 at $37.40. Today the stock is in the $28.50 area. I sold 2 DDD 11/19/21 $40 Calls for a premium of $1.05 for $210.

Sell to Open 2 DDD 11/19/21 $40.00 C @ $1.05 (+$210)

This is a return of 2.8%. This is not what I look for in an 89 day Call but sometimes you have to do this when a position moves against you.

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I bought 200 shares of SKillz (SKLZ) on 6/7/21 at $22.70. Today the stock is in the $10.70 area. I sold 2 SKLZ 11/19/21 $17.50 Calls for a premium of 45¢ for $90.

Sell to Open 2 SKLZ 11/19/21 $17.50 C @ 45¢ (+$90)

This position’s value is cut in half. This Call only gives me a return of 2%. Not only is this a weak premium but if I get assigned I’ll lose money on the stock because to get this premium I had to sell an In-the-Money Call.

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I bought 200 shares of Xpeng (XPEV) on 7/21/21 for $43.45. Today the stock is in the $39.50 area. I sold 2 XPEV 10/15/21 $45 Calls for a premium of $1.85 for $370.

Sell to Open 2 XPEV 10/15/21 $45.00 C @ $1.85 (+$370)

This trade is the best of the 3. The Call gave me a return of 4.2%. Also I only went out to 10/15 with my Expiration Date. And if I get assigned I’ll make money on the stock sale.

 

Successful trading,

Steve

The Options Coach