Grasshopper Trade with MRVL

I have really been laying low when it comes to trading. I don’t like what’s happening in the world, and I don’t like the response of our country to some huge problems. Remember, it’s news that moves the markets!

Having said that, I really miss trading, so once in a while I put in a small trade to stay in the game. If you are trading please be very careful.

Let’s check out the small Grasshopper trade I made. I bought 100 shares of Marvell (MRVL) and sold an At-the-Money Call option. I bought the 100 shares at $51 and sold one 11/10/23 $51 Call for a premium of $1. This gave me a total premium of $100.

Buy 100 Shares MRVL @ $51.00

Sell to Open 1 MRVL 11/10/23 $51.00 C @ $1.00 (+$100)

This is a safe 1 contract Covered Call using a good stock so I give this trade a Risk Factor 1.

I took this $100 premium and bought 10 shares of Neubeger Berman Next Generation Fund (NBXG). NBXG is one of my high dividend stocks I’m building a position in. I now own 585 shares at $9.81 and I’m receiving a dividend of 12.2%.

I hope everyone is doing well. And I hope to be back to trading soon. The election is around the corner and hopefully policies will change in this country while the fight for the White House starts.

 

Successful trading,

Steve

The Options Coach