This morning I put in an order to buy 2000 shares of RH at $58.40 and sell 20 contracts of the 5/12/17 $60 Calls for a $1 premium. As soon as I put in the order RH dropped a few cents and I was executed on the 2000 shares at $58.37. I wanted to get the $1 so I waited a while for the Call Option to get executed. The stock dropped a little more so I had to wait a little more. The stock came back up to where the premium was at $1 but then I was only executed on 3 of my 20 contracts. And that’s the way it still stands. I own 2000 shares of RH and I sold 3 contracts of the 5/12/17 $60 Calls. I’ll leave the order in and see if I get the other 17 contracts sold. If not I’ll try again tomorrow. This is a Covered Call on a very hot stock so I give this trade a Risk Factor 1. Here’s the orders I was executed on so far:
Buy 2000 Shares of RH @ $58.37
Sell to Open 3 RH 5/12/17 $60 C @ $1 ($300)
I’ll report when I get the other 17 Call sold. It will probably be tomorrow.
Steve
The Options Coach