Earlier I reported a Grasshopper trade with Inseego (INSG). I bought 100 shares of the stock at $19.60 and sold a $20 Call for a $1 premium. When I reported this trade I also reported that I bought 100 shares of LX and placed an order to sell a 1 contract Call.<\/p>\n
Right after I sent out that report I had to go to PT for my shoulder. I just returned home and saw I was filled on my LX Call. I bought 100 shares at $11.25 and sold a 1 contract 2\/19\/21 $12.50 Call for a premium of 45\u00a2.<\/p>\n
Buy 100 Shares LX @ $11.25<\/strong><\/p>\n Sell to Open 1 LX 2\/19\/21 12.50 C @ 45\u00a2 (+$45)<\/strong><\/p>\n This premium is a 4% return on my investment. If I get assigned I’ll make another $125 on the stock sale. This trade gets a Risk Factor 1<\/strong>.<\/p>\n I like both INSG and LX. I also just made another Grasshopper trade with INSG. I made this as a learning trade for Grasshoppers. This is an In-the-Money<\/strong> Covered Call. I bought 100 shares of INSG at $20.10. We know this stock only has monthly options. The next Expiration Date is 2\/19\/21. The one after that is 3\/19\/21. I was looking at the Strike Prices of $20 and $22.50. The $20 Call had a premium of $1.30 and the $22.50 had 53\u00a2. If I go with the $20 I would lose 10\u00a2 on the stock sale if assigned because I bought the stock at $20.10. But this has a very nice premium of $1.30. This is a 6.4% return. However, with an In-the-Money<\/strong> Call you give back some of the premium if assigned. In this situation I’d lose 10\u00a2 on the stock sale. My gain with the premium would be $1.20. This is still a 5.9% return. I like this better than the $22.50 Call for the 53\u00a2 premium. Especially since I want to get assigned. I have a better chance of getting assigned with the $20 Call.<\/p>\n Buy 100 Shares INSG @ $20.10<\/strong><\/p>\n Sell to Open 1 INSG 2\/19\/21 $20.00 C @ $1.30 (+$130)<\/strong><\/p>\n This trade also gets a Risk Factor 1<\/strong>. I think this will be a very good Grasshopper trade.<\/p>\n Please send me an email if you have any questions on the In-the-Money<\/strong> Covered Call.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Earlier I reported a Grasshopper trade with Inseego (INSG). I bought 100 shares of the stock at $19.60 and sold a $20 Call for a $1 premium. When I reported this trade I also reported that I bought 100 shares of LX and placed an order to sell a 1 contract Call. Right after I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-10488","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2Ja","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10488"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10488\/revisions"}],"predecessor-version":[{"id":10495,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10488\/revisions\/10495"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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