Just made my last Grasshopper trade of the week.
This one is a cash-secured put on Peloton (PTON). It’s not one of my favorite stocks, but it fit within the remaining Grasshopper budget. There are plenty of low-priced names out there, but I picked Peloton because UBS analyst Arpine Kocharyan upgraded it from Neutral to Buy, raising the price target from $7.50 to $11.
After the stock opened about 50¢ higher, it quickly pulled back to the $6.60 area, which I saw as a good opportunity to sell a short-dated put.
Some young traders might think, “Why even bother making a trade for $15?” But this week alone, I’ve made three trades where the premium was 15¢ or less. In this case, I didn’t spend any money — I simply put $650 idle and earned $15 in two days. Don’t focus on the dollar amount — focus on the Return on Investment (ROI). As you build your account you might make this trade with 10 contracts. The ROI will be the same. This trade delivered 2.3% of my strike price in just 2 days, which is a solid return on short-term capital and fits perfectly into my “1 Week / 1%” strategy.
The Grasshopper Project – Cash Secured Put
Peloton (PTON)
Sell to Open 1 PTON 8/1/25 $6.50 Put @ $0.15 (+$15)
📈 Successful Trading,
Steve
The Options Coach