Grasshopper Trade With MARK Filled

Yesterday I bought 1000 shares of Remark Holdings (MARK) at $2.30 to be part of a Grasshopper Covered Call. I was not able to get the Calls sold because I was traveling from Boston. Today the stock is down a few cents. Since this is a very low priced stock, with the stock down, today I couldn’t get the premium I wanted for an option expiring this Friday. Mark only has monthly options so I decided to sell the $2.50 Call with the Expiration Date of 2/19/21. This is the next Expiration Date. I sold 10 2/19/21 $2.50 Calls for a premium of 25¢.

Sell to Open 10 MARK 2/19/21 $2.50 C @ 25¢ (+$250)

Remember, this is a $2 stock. This 25¢ premium on the 1000 shares is a premium of $250. That’s a 10.8% return on investment. If assigned I’ll make another 20¢ on the stock sale for $200. This would be a 19.5% ROI.

If you are a Grasshopper with a smaller account, this is the type of trades you should be looking for. It’s all about the return!

Successful trading,

Steve

The Options Coach