I’m well aware I’m not making too many Grasshopper Trades, but the truth is I avoid getting into more stocks. Even more than that, I don’t want you getting into any stocks. As I’ve been saying, it seems like the indexes keep moving up but individual stocks go down. Trying to pick the ones that are moving up is like throwing darts at a board. Just keep studying and try to pick your own stock if you’re bent on getting into positions, but be very careful!<\/p>\n
One trade I made today was with Microchip (MCHP). This stock is doing a 2:1 split on Oct 12th and I’ve been in and out of long term options grabbing profit. Today with the stock at $160.88 I bought 5 options. I made that trade about 20 minutes ago and the stock is already up $1. I plan on holding this position for about 2 weeks. However I will sell if I’m up $500. The last few trades I was buying 2 contracts, this time I bought 5 contracts. I bought 5 MCHP 1\/21\/22 $160 Calls for a premium of $12.50.<\/p>\n
Buy to Open 5 MCHP 1\/21\/22 $160.00 C @ $12.50<\/strong><\/p>\n If the stock doesn’t move I might hold these 5 contracts through the split. It comes in about a month.<\/p>\n I own 2000 shares of UVXY at $23.46. UVXY is Proshares Ultra VIX Short Term. This mimics the VIX index. Basically the VIX is the index that shows the “fear factor.” If the Vix or UVXY moves up, there is fear in the market and investors sell stocks. If they move down, fear is low and then the market will move up.<\/p>\n The premiums are very high and that means volatility is high.<\/p>\n This week I sold to open 20 UVXY 9\/17\/21 $24 Calls for a premium of $1.20 for $2400. To me it looks like UVXY will not get to my Strike Price of $24. I decided to get a jump on next week and sell another Call to expire 9\/24, next Friday. My position is below.<\/p>\n 9\/17\/21 – Sell to Open 20 UVXY 9\/24\/21 $23.50 C @ $1.40 (+$2800)<\/strong><\/p>\n I think if you bought 100 shares this would make a nice Grasshopper Trade. The premium I received is a return of 6%. You can buy the stock right now at $22.90 and sell the $23 Call for a premium of $1.45. This is a return of 6.3%.<\/p>\n You can buy the stock right now and sell a Call expiring in 2 hours and get over 1%.<\/p>\n The reason I like UVXY is it seems to stay in a range between $15 and $24. If the stock went down you can still get a decent premium until the stock comes back up. The VIX and the UVXY are always moving up and down.<\/p>\n Good luck!<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I’m well aware I’m not making too many Grasshopper Trades, but the truth is I avoid getting into more stocks. Even more than that, I don’t want you getting into any stocks. As I’ve been saying, it seems like the indexes keep moving up but individual stocks go down. Trying to pick the ones that […]<\/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-12270","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3bU","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/12270","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=12270"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/12270\/revisions"}],"predecessor-version":[{"id":12271,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/12270\/revisions\/12271"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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