I just did a Covered Call with RH. With the stock at $74.60 I bought 500 shares. It looked like it might move a little so I didn’t immediately sell the Call watching to see if the stock would move a little to get a nice premium with a little higher Strike Price. I put in the order to sell a Call with the Strike Price of $76 trying to get a $2 premium. The stock jumped and I was executed on my Call when the stock hit $75.25. Now that I own the 500 shares and I sold a 5 contract Call this trade is a Covered Call. The trade gets a Risk Factor 1.
RH Covered Call
Buy 500 Shares RH @ $74.60
Sell to Open 5 RH 7/28/17 $76.00 C @ $2.00 (+$1000)
I’m happy with way the week is starting. Let’s hope I can have another great week. I didn’t get my week ending report done you but it was a $8155 week. So far that’s the biggest week of 2017.
Any questions, send me an email. Be careful!
Steve
The Options Coach