{"id":13488,"date":"2022-11-14T14:10:04","date_gmt":"2022-11-14T19:10:04","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=13488"},"modified":"2022-11-14T14:17:06","modified_gmt":"2022-11-14T19:17:06","slug":"grasshopper-trade-with-lulu","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=13488","title":{"rendered":"Grasshopper Trade With LULU"},"content":{"rendered":"

\"\"<\/a>I really like the stock Lululemon (LULU). A few weeks ago they came out with great earnings so I’ve been watching it very closely. I am worried about the market but hopefully we can finish up the year with a strong ending.<\/p>\n

This morning I decided to buy 100 shares and sell a 1 contract Call against them. I bought the shares at $356 and a few minutes ago I sold the $362.50 Call Option receiving a premium of $6 for $600. This option will expire this coming Friday, November 18th.<\/p>\n

Buy 100 Shares LULU @ $356.00<\/strong><\/p>\n

Sell to Open 1 LULU 11\/18\/22 $362.50 C @ $6.00 (+$600)<\/strong><\/p>\n

 <\/p>\n

The $6 premium is a Return on Investment (ROI) of 1.68% for the 5 day option. If I get assigned at my Strike Price of $362.50 I’ll make an additional $650 on the stock sale. If assigned my total gain will be $1250 which is a return of 3.5%.<\/p>\n

I give this trade a Risk Factor 2<\/strong>. Covered Calls are a low risk trade but this market adds more risk than normal.<\/p>\n

I consider this an expensive Grasshopper trade; $356 is a lot of money to pay for a share of stock. I was going to make another trade with Nvidia with the stock a bit cheaper, about half the price, but the company is reporting earnings this week, on Wednesday, and this kind of news adds a lot of risk to a trade.<\/p>\n

Lets watch how this trade plays out and let me know if you have any questions.<\/p>\n

 <\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I really like the stock Lululemon (LULU). A few weeks ago they came out with great earnings so I’ve been watching it very closely. I am worried about the market but hopefully we can finish up the year with a strong ending. This morning I decided to buy 100 shares and sell a 1 contract […]<\/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-13488","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3vy","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13488","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=13488"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13488\/revisions"}],"predecessor-version":[{"id":13492,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13488\/revisions\/13492"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}