This weekend I had to take a trip to Boston. Before I left to return home yesterday I made 2 purchases as Grasshopper trades with the hope of selling Calls to make Covered Calls. I bought 100 shares of NIO and 1000 shares of MARK. Both stocks received upgrades yesterday. I bought the stocks in anticipation of the stock moving up before I sold the Calls. I figured I would sell the Calls as I was driving home. The problem is I could not get internet with my Jetpack on I95 South. I tried numerous times but my trades would not go through. The stocks did move higher but I did not get home until the market was closed. In fact the market closed half way through my trip.
My thought was, no problem, I’ll sell the Calls today from home. I woke up this morning and I see Citi gave NIO a downgrade because they feel NIO is getting too much competition from Tesla in China. Now NIO is down in the premarket and I will not get a Call sold today.
I think NIO will be on the move again soon. I’ll just have to wait it out until it does.
With Mark, before I left the hotel I placed an order to sell 10 1/15/21 $2.50 Calls for a premium of 15¢. I wrote I might have to lower that to 13¢ to get filled. If I was able to change the order I think I would have been filled, but I couldn’t get the change in. Most know I sell the Calls at the same time as buying the stock. Yesterday, with me traveling I couldn’t get my orders in. The market looks like it’s going to open up. Let’s see if I can get the order filled today.
Successful trading,
Steve
The Options Coach