Filled on 2 NIO Trades

I must say, it’s good to be home! Trying to get trades in while driving on I95 with weak wifi is no fun.

I was filled on 2 trades I was trying to get filled yesterday. 1 is in my trading account and the other in “The Grasshopper Field.”

Yesterday I bought 1000 shares of NIO at $65.40. Then the stock dropped back a little and I felt the lower price would make a good Grasshopper trade. I bought another 100 shares at $63.75 for the Grasshopper trade.

In my trading account, with the shares Bought at $65.40 I sold 10 1/15/21 $66 Call for a premium of $1.60 for a total of $1600.

Sell to Open 10 NIO 1/15/21 $66.00 C @ $1.60 (+$1600)

I was also filled on my Grasshopper trade. Yesterday I bought 100 shares at $63.75. I sold 1 NIO 1/15/21 $65 Call for a $2 premium ($200).

Sell to Open 1 NIO 1/15/21 $65.00 C @ $2.00 (+$200)

This might be a little expensive for a Grasshopper trade. The 100 shares cost $6375. Getting the $200 premium on a $6375 investment gives me a ROI of 3.1%. If I get assigned I’ll make $1.25 on the stock sale. This would be a gain of $325 and a total return of 5%. This will be a great Grasshopper trade!

Both of these Covered Calls get a Risk Factor 1.

I know we have a lot of new readers. Just to be clear, I love to get assigned on my Covered Calls. This might not be everyone’s strategy but it is mine.

Successful trading,

Steve

The Options Coach