The Grasshopper Project — 3rd Trade of the Day
SoFi Technologies ITM Covered Call
I just made the last trade in The Grasshopper Project for the week. This is a 1 contract ITM Covered Call involving SOFI Technologies (SOFI). This trade uses the remaining balance of The Grasshopper Project and it continues to follows the project’s low-risk approach and aligns with its core rules.
Here’s the breakdown of the third trade—a classic In-the-Money (ITM) Covered Call:
📈 Trade Details:
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Buy: 100 shares of SOFI @ $15.45
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Sell to Open: 1 contract of SOFI 7/3/25 $15.00 Call @ 80¢
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Premium Collected: +$80
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Stock Price at Entry of Call Option: $15.45
Trade Rationale:
I have been watching and trading SOFI for a while now. The stock has been moving up lately and many traders have it on their buy list. Also, SOFI has beat earnings for the last four quarters. After making the first two trades in The Grasshopper Project I had a balance in the account of $1,605. The cost of this trade was $1545. I have now exhausted the $10,000 budget of the project. The next trades I make will be next Monday when the first two trades expire.
The Setup:
✅ Summary:
This trade reflects The Grasshopper Project’s goal of low-risk trades. After making the first two trades in The Grasshopper Project I had a balance in the account of $1,605. The cost of this trade was $1545. I have now exhausted the $10,000 budget of the project. The next trades I make will be next Monday when the first two trades expire. Because of the low cash premium I went out with the Strike Price to July 3rd, 10 days. The premium is only 80¢, however, it’s a ROI of 2.2%. Remember, it’s not the amount of money you bring in, it’s the Return on Investment.
💰 Account Snapshot:
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Starting Balance: $1,605
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Cost of Trade: $1545
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Remaining Balance: $60
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Profit Potential: $80
- Return on Investment (ROI, if called away): 2.2%
(If I’m not called away I keep the $80 and I keep the stock)
🧠 Final Thoughts
The stock is at $15.45. I will be called away if the stock stays above my Strike of $15. In that case I will sell the stock with assignment losing 45¢. My profit will be the remainder of the premium which is 35¢. Making 35¢ on the $15.45 investment is a return on Investment of 2.2%.
If the stock moves below the $15 Strike I will not get called away and I keep the 80¢ and I keep the stock. If this happens my ROI will be 5.1%. This well offset the reduction in the stock value.
📈Successful trading,
Steve
The Options Coach