SLV is a silver Exchange Traded Fund (ETF). I’ve been involved in SLV many times, but not for a while. Today with Reddit influenced short squeeze silver is up 10%. I felt it was a good time to get reacquainted with the ETF.<\/p>\n
Not only did I think it would be a good play for my main trading account, I also felt it would be a good Grasshopper trade.<\/p>\n
For “The Grasshopper Field” I bought 100 shares at$26.60 and sold a 1 contract 2\/5\/21 $27 Call for a premium of $1.20 for $120.<\/p>\n
Buy 100 Shares SLV @ $26.60<\/strong><\/p>\n Sell to Open 1 SLV 2\/5\/21 $27.00 C @ $1.20 (+$120)\u00a0<\/strong><\/p>\n I also bought 500 shares for my trading account and sold the same Call.<\/p>\n Buy 500 Shares SLV @ $26.60<\/strong><\/p>\n Sell to Open 5 SLV 2\/5\/21 $27.00 C @ $1.20 (+$600)\u00a0<\/strong><\/p>\n Both of these trades give a Return of 4.5% for the premium only. If I get assigned the return will increase.<\/p>\n Both of these trades get a Risk Factor 1<\/strong>.<\/p>\n I’m holding Exxon Mobil (XOM) in the Double Dipping Portfolio of Wealth Builder. Today I sold a 5 contract Call and with the premium I bought another 4 shares.<\/p>\n
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