Last week I bought 2000 shares of RH at $58.37 and sold 20 contracts. Those options expired last Friday but I wasn’t assigned so I still own the 2000 shares. A few minutes ago I sold another 20 contracts of the RH 5/19/17 $58.50 Calls for a premium of $1, for a total of $2000. This option expires this coming Friday and it’s a Covered Call on previously owned stock so this trade gets a Risk Factor 1. Here’s the sell order:
Sell to Open 20 RH 5/19/17 $58.50 C @ $1.00 (+$2000)
$1.00 is a nice premium to get on a $58 stock. The Rate of Return is 1.7% for a 4 day investment.
Steve
The Options Coach