The Grasshopper Project

First Grasshopper Project Trade: Super Micro Computer ITM Covered Call

I just made the first two trades in The Grasshopper Project, both involving the same stock: Super Micro Computer (SMCI). Each trade follows the project’s low-risk approach and aligns with its core rules.

Here’s the breakdown of the first trade—a classic In-the-Money (ITM) Covered Call:

📈 Trade Details:

 Trade Rationale:

SMCI opened this morning a few dollars lower. Since I like the stock, I immediately looked into the cause. It turns out the company announced a $2 billion offering of convertible senior notes.

This kind of offering isn’t automatically a red flag. It depends on how the funds will be used and how strong the company’s financials are. In SMCI’s case, the balance sheet is healthy, and if the notes are used for growth or to refinance higher-cost debt, this could be a strategic positive. After researching, I felt confident enough to move forward with the trade.

 The Setup:

I bought SMCI at $42.45 and sold the $41.50 call for $2.35. Soon after, the stock moved up so I delayed of selling the Call. With the stock at $43.25 I was filled on my Call.

If I’m called away at $41.50, I’ll take a $0.95 loss on the stock ($42.45 buy – $41.50 strike). But since I collected $2.35 in premium, my net profit is $1.40 per share, or $140 total.

✅ Summary:

This trade reflects The Grasshopper Project’s goal: low-risk income generation using smart, well-timed trades. SMCI’s temporary dip provided a great opportunity to open this position with built-in downside protection via the premium.

💰 Account Snapshot:

Trade #2: Cash-Secured Put on SMCI

My second trade for The Grasshopper Project also involves Super Micro Computer (SMCI). With the stock trading at $43.15, I saw an opportunity to open a Cash-Secured Put and collect additional premium.

📈 Trade Details:

Trade Rationale:

This trade complements my first SMCI covered call. While already holding 100 shares, I’m willing to buy another 100 shares if the price dips — but only at a discounted level. Selling this cash-secured put allows me to potentially enter at $41.50 while being paid $60 up front to wait.

If SMCI stays above $41.50 through expiration, I’ll keep the premium without having to buy the stock.

If SMCI drops below $41.50 and I’m assigned, I’ll own another 100 shares at an effective cost basis of $40.90 ($41.50 strike – $0.60 premium), which I’m comfortable with.

✅ Summary:

This trade reinforces The Grasshopper Project’s core strategy: steady income, disciplined entries, and controlled risk. Whether I’m assigned or not, I get paid either way.

💰 Account Snapshot (Post-Trade #2):

(This is not an investment! The ROI is calculated on the amount I put up as collateral)

 

🧠 Final Thoughts

I’m very excited to start The Grasshopper Project. Clearly this will take time — hopefully it will be a great learning tool. My goal is that the Main Street beats Wall Street readers will have their questions answered about starting their options trading career with an account of $10,000. And hopefully learn how to bring in consistent money to help build wealth for their families.

Please let me know if you have any questions or if you have any stocks you would like to to consider for The Grasshopper Project.

 

📈Successful trading,

Steve

The Options Coach