In-the-Money Grasshopper Trade

I just made an In-the-Money Grasshopper Trade with Workhorse (WKHS). Click on the post title to read more.

 

Buy 200 Shares WKHS @ $15.60

Sell to Open 2 WKHS 6/18/21 $15.00 C @ $1.40 (+$280)

I bought the stock at $15.60 and sold the $15 Call. If assigned I’ll lose 60¢ on the stock sale but I’ll profit 80¢ because of the $140 premium. This will be a 5.1% return. If I don’t get assigned I’ll keep the entire $140 for a return of 9%. I do this to help the chances of getting assigned.

Successful Trading,

Steve

The Options Coach

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