On Friday I reported that I had my broker deliver 3000 shares of RH because of my Naked Call expiring. Please read my post “RH Trade Explanation.” This morning the market is taking a big hit because of Trumps health care issues. I delivered the 3000 shares of RH at $36.50 which was my Strike Price. This means I was Short 3000 shares at the $36.50 price. This morning RH is down with the market and I bought 3000 shares to return them to my broker at the price of $36.25. This gave me a 25¢ profit on the 3000 shares for a gain of $750 to end the RH Naked Call/Short position. The result is I keep the premium ($2400) I received for the sale of the Naked Call, which goes toward last weeks goal of my “2017 Challenge” and the $750 for the closing of the stock position will goes toward this week’s profit. The total gain for the selling of the Naked Call is $3150. Here’s the way the short position orders went:
Short 3000 Shares RH @ $36.50
Buy 3000 Shares RH @ $36.25
Profit +$750
If you have any questions on this RH trade please send me an email, it’s very important to understand how this works.
I didn’t get to my “Results Week Ending 3/24/17” report this week end. I was very busy with family, and of course watching basketball. I’ll get to it today and send it out.
Steve
The Options Coach