Yesterday I sold 10 contracts of the RH 3/31/17 $37.50 Naked Calls. The stock has been very volatile so I never know when the stock is gonna move up or down. As of late the stock has been moving up. This morning at the opening I had to leave my desk for a few hours. Before I shut down my computer I put an order in to buy 1000 shares of RH at $37.40. I just got back to my computer and I see I was executed but the price was at $36.69. I have no idea why I was executed at a much lower price than what I placed on my order, but I’m glad because the stock was much higher. The stock went up to $37.81. I would have been executed either way but I like the much lower price. I will call my broker and let you know why this happened. I now have a $37.50 Covered Call with RH expiring this Friday. Now that my option is covered my Risk Factor goes to 1. Here’s the stock buy order:
Buy 1000 Shares RH @ $36.69
I also just placed another order to sell 15 contracts of the RH 3/31/17 $39 Calls. I’m looking for a premium of 90¢. I’ll let you know as soon as I get executed.
Steve
The Options Coach