I was filled on a couple of Grasshopper Trades, a 2 contract Covered Call with Harley Davidson (HOG) and a 2 contract with Xpeng (XPEV).<\/p>\n
With HOG I bought 200 shares of the stock on 5\/17\/21 at $51.10. I bought the shares to do a Covered Call because there was unusual option activity. I sold Calls a few times but the stock dropped way back and it’s very difficult to get a good premium without the chance of losing money with assignment.<\/p>\n
This is an investment that went bad. And to tell you the truth I’m sick of holding the stock. My account has been doing great lately so I decided to make a little premium with the stock even if I have a chance of losing money with assignment. I decided to do an In-the-Money Covered Call.<\/p>\n
Having bought the stock at $51.10, I sold 2 HOG 8\/20\/21 $41.50 Call for a premium of 35\u00a2 for $70. If I get assigned I’ll take a big hit on the stock sale. But like I wrote, I’m willing to lose money and move on with this one. If I don’t get assigned I’ll keep selling Calls until I do. I’ll either make money with the stock or move on and put the money to work elsewhere.<\/p>\n
<\/p>\n
Sell to Open 2 HOG 8\/20\/21 $41.50 C @ 35\u00a2 (+$70)<\/strong><\/p>\n I did take in some premiums with this stock but if I get assigned I’ll lose $1920 on the stock sale. I give this trade a Risk Factor 4<\/strong>. The only reason it’s not a Risk Factor 5 is because I don’t think I’ll get assigned. The stock has not been doing much except move down.<\/p>\n This premium is a return of about a half a percent. It’s small but it gives me a little money to put toward my margin interest.<\/p>\n With Xpeng (XPEV) I bought 200 shares of the stock at $43.45 on 7\/21\/21. I just sold 2 8\/13\/21 $44 Call for a premium of 65\u00a2 for $130.<\/p>\n Sell to Open 2 XPEV 8\/13\/21 $44.00 C @ 65\u00a2 (+$130)<\/strong><\/p>\n This trade get’s a Risk Factor 1.<\/p>\n This return is 1.5%.<\/p>\n Today I also made Master Trades with Square (SQ) and Advanced Micro Devices (AMD).<\/p>\n I own 300 shares of SQ at $263.50. Today I sold 3 SQ 8\/13\/21 $285.00 Calls for a premium of $5 for $1500. Sq is on the move!\u00a0<\/span><\/p>\n Sell to Open 3 SQ 8\/13\/21 $285.00 C @ $5.00 (+$1500)<\/strong><\/p>\n __________<\/p>\n With AMD I own 500 shares at $110 and 300 shares at $114.80.<\/p>\n Today I sold 5 AMD 8\/13\/21 $112 Calls for a premium of $3 for $1500 and I sold 3 AMD 8\/13\/21 $115 Call for a premium of $1.65 for $495. Both of these trades get a Risk Factor 1.<\/p>\n Sell to Open 5 AMD 8\/13\/21 $112.00 C @ $3.00 (+$1500)<\/strong><\/p>\n __________<\/strong><\/p>\n Sell to Open 3 AMD 9\/13\/21 $115.00 C @ $1.65 (+$495)<\/strong><\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" I was filled on a couple of Grasshopper Trades, a 2 contract Covered Call with Harley Davidson (HOG) and a 2 contract with Xpeng (XPEV). With HOG I bought 200 shares of the stock on 5\/17\/21 at $51.10. I bought the shares to do a Covered Call because there was unusual option activity. I sold […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-12058","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-38u","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/12058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=12058"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/12058\/revisions"}],"predecessor-version":[{"id":12060,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/12058\/revisions\/12060"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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