Grasshopper Trade With Pinterest

On Wednesday I bought 100 shares of Pinterest (PINS) at $31.63. I bought the shares specifically to sell a Call. As soon as I bought the stock it moved down to where I did not like the premium any longer. Today on a huge down day for the market the stock is up a little but it fluctuated up enough for me to get a nice premium. Remember, when I make these Grasshopper Trades I’m not concentrating on the amount of money the premium is but the Return on Investment (ROI).

You might know I had a knee replacement last week. With the premium at 25¢ I placed an order to sell a Call to receive 50¢. Then I closed my computer to get PT on my knee. When PT was over I looked at my order and I was filled on my order getting the 50¢ premium.

I bought 100 shares of PINS on Wednesday for $31.63 and today sold 1 PINS 1/17/25 $32.50 Call for a 50¢ premium for $50.

1/8/25 – Buy 100 Shares PINS @ $31.63

1/10/25 – Sell to Open 1 PINS 1/17/25 $32.50 C @ 50¢ (+$50)

This 50¢ premium is 1.5% and fits into my “1 Week/1%” strategy. If I get assigned I will make an additional $87 on the stock sale. If this happens this Grasshopper Trade will give me a return on Investment of 4.3% for the one week trade. This is a great Grasshopper Trade!

 

Successful trading,

Steve

The Options Coach