It was a very simple week! I only had 1 Grasshopper trade come to an end. I say Grasshopper trade because it was a Covered Call involving 100 shares of stock and the sale of a 1 contract Call. I was assigned on the Covered Call with a $600 profit on the stock sale and a $200 premium for a total gain of $800.
I bought 100 shares of RH on 7/18/18 for $133 per shares. The total investment was 13,300. This was the 4th week in a row where I sold a 1 contract, $139 Call. Each week I brought in a premium of $200. The 1st week it was a little less because it was a 2 day Call. A $200 premium on a $133 stock is a 1.5% return. All of these Calls were 1 week Calls. So, for the last 4 weeks I received 1.5% return for the 1 week investment. That’s 6% for the 4 week investment. The last week, which ended this past Friday, I was finally assigned and made an additional $600 on the stock sale. If we average out my premiums at $200 a week for 4 weeks, plus $600 on the stock sale, That’s a total profit of $1400 on a $13,300 investment which lasted 4 weeks. That’s a 10.5% return for a 4 week investment. This was the perfect Grasshopper trade. Any one of the readers could have done these trades. A $13,300 investment and 4 weeks later I have $14,700. That’s fantastic! Grasshopper, or no Grasshopper, I’m happy with this result.
RH Covered Call
7/18/18 – Buy 100 Shares RH @$133.00
8/10/18 – Assigned 100 Shares RH @ $139.00
Profit +$600
8/6/18 – Sell to Open 1 RH $139.00 8/10/18 C @ $2.00 (+$200)
8/10/18 – Expired 1 RH $139.00 8/10/18 C
Profit +$200
Total Weekly Gain +$800
That’s it!!!! That’s all I have for the week. And I’m very happy. I’m happy I made 800 bucks for the week, and I’m happy I was able to show you a great example of a Grasshopper trade. A REAL trade!
I’m very passionate about this site. And I’m very happy being able to show everyone how to make a very nice profit with a very small investment. I hope to do another one this week.
Steve
The Options Coach