I made 2 Grasshopper Trades 1 with Palentir (PLTR) and 1 with Harley Davidson (HOG). I made both of these trades giving me a better chance to get assigned.<\/p>\n
With PLTR this is my 2nd Grasshopper Trade to expire this week. To better my chances to get assigned both of these trades are At-the-Money<\/a><\/span> Covered Calls. Last week on Wednesday I bought 200 shares of PLTR at $19.50 and on Friday I sold 2 $19.50 Calls to expire this Friday. This gave me a 60\u00a2 premium for $120. This trade has a 3% Return for the premium. If assigned I will break even on the stock. I’m in this trade for the 3% premium only.<\/p>\n Today I bought another 200 shares at $20. With these shares I also did an At-the-Money Covered Call. I sold 2 PLTR 5\/21\/21 $20 Calls for a premium of 60\u00a2 for the same $120 as the 1st Covered Call above. This trade also gave me a return of 3%.<\/p>\n <\/p>\n At-the-Money Covered Call<\/span><\/p>\n Buy 200 Shares PLTR @ $20.00<\/strong><\/p>\n Sell to Open 2 PLTR 5\/21\/21 $20.00 C @ 60\u00a2 (+$120)<\/strong><\/p>\n With PLTR reporting very good earnings I think I have a good chance to get assigned on both of my PLTR Covered Calls.<\/p>\n For my next trade I did an In-the-Money<\/a><\/span> Covered Call with Harley Davidson (HOG). This stock is a little more expensive but it’s still good for a new trader. The In-the Money Calls gives me a better chance of getting assigned than the At-the-Money Call. I bought 200 shares of HOG at $51.10 and sold 2 5\/21\/21 $51.00 Calls for a premium of $1.25 for $250.<\/p>\n <\/p>\n In-the-Money Covered Call<\/span><\/p>\n Buy 200 Shares HOG @ $51.10<\/strong><\/p>\n Sell to Open 2 HOG 5\/21\/21 $51.00 C @ $1.25 (+$250)<\/strong><\/p>\n This premium is 2.4% of my buy-in price. However, if I get assigned I’ll lose 10\u00a2 on the stock sale. If I don’t get assigned I keep the stock and the higher premium.<\/p>\n On assignment I lose 10\u00a2 on the stock sale which for the 200 shares will be $20. So my gain of $250 with the premium will be cut to $230. When selling an In-the-Money Call this is what you sign up for. When you want to get assigned, as I do, you sign up to give a little back to help get assigned. If assigned you move on.<\/p>\n These trades above are listed on the Grasshopper Trades<\/a><\/span> page, also on the Active Trades\/Current Positions<\/a><\/span> page.<\/p>\n I hope most readers took a look at my Changes to MS beats WS<\/a><\/span> post. If you haven’t please take a look now.<\/p>\n To save time I will not be writing a long post on my larger trades, but I will continue writing about my Grasshopper Trades. We’re getting back to the main reason I started Main Street beats Wall Street<\/strong> in the first place. And that’s to learn from trades new traders can relate to.<\/p>\n I did make another Larger In-the-Money Covered Call with Pinterest (PINS). I write a little about this one because it can be a good learning trade. This trade was more in the money than the HOG trade above. With PINS I bought 1000 shares of the stock at $56.90 and sold 10 PINS 5\/21\/21 $56 Call for a premium of $1.90 for $1900. You will notice on an assignment I’ll be giving back 90\u00a2 on the stock sale. On 1000 shares that’s $900. Again I made this trade to try to get assigned. I brought in a $1.90 premium and on assignment I give back 90\u00a2 for a $1 profit of $1000. The premium is a return of 3.3%, however, on assignment I’ll keep $1 of the $1.90 premium. This will be a return of 1.75%. I’m very happy with this for a 1 week trade and this trade will fit into my “1 Week\/1%<\/a>“<\/span> strategy. Again I sell In-the-Money Calls to help my chances of getting assigned.<\/p>\n
\n
\n