Way back on 1/11/21 I bought 100 shares of NIO at $63.75 to do a Covered Call in “The Grasshopper Field.” I went a few weeks selling Calls but then the stock pulled back, along with all the electric vehicle stocks. The last month EV stocks have been charging back. The price of $63.75 was still too high to get a premium so today I bought another 100 shares at $46.85. I now own 200 shares in “The Grasshopper Field” with an average price of $56.80.
Today I sold a 2 contract Call. Since my buy-in price is now $56.80 I sold 2 NIO 7/16/21 $57 Calls for a premium of 60¢.
Buy 200 Shares NIO @ $56.80
Sell to Open 2 NIO 7/16/21 $57.00 C @ 60¢ (+$120)
I removed the 100 shares I owned at $63.75 and now, if I’m not assigned, the shares will be listed in “The Grasshopper Field” with the buying date of 7/6/21, and buying 200 shares at $56.80.
This premium is only 1% for the 2 week option but this is the kind of move I like to make to help things move along in my account.
Successful trading,
Steve
The Options Coach