Workhorse Grasshopper Trade

I was just filled on a Grasshopper trade with Workhorse (WKHS). I bought 100 shares of the stock at $25 and sold 1 contract of the WKHS 1/15/21 $25.50 Call for a premium of 75¢ for $75.

Buy 100 Shares WKHS @ $25.00

Sell to Open 1 WKHS 1/15/21 $25.50 C @ 75¢ (+$75)

I’ve been involved in WKHS for a while now. This morning I felt this was a good Grasshopper opportunity. The premium alone is a Return of 3%. This is great for a 3 day trade. If I get assigned I’ll make another 50¢ on the stock sale for $50. If assigned my gain will be $125 for a Return on Investment of 5%.

By the time you get this post the stock, or the stocks of any Grasshopper trade, there might be movement. You can just buy the stock at a different price and pick a different Strike Price.

Successful trading,

Steve

The Options Coach