Yesterday with RH fluctuating I bought 1000 shares at $72.67. Today it already hit $74. When it was at $74 I was thinking of selling the 1000 shares at a nice 1 day profit of $1.33 per shares. I decided not to sell and I sold a 10 contract $74.50 Call expiring tomorrow. I received a premium of 75¢ ($750). I’m hoping the stock stays up because I also have a $72.50 Put which I received a $1500 premium on. I would like to see RH close tomorrow above my Strike Price on my Call, $74.50. If that happens I’ll be completely out of all my RH positions. I’d like to start fresh next week. Let’s watch and see what happens. This is a Covered Call on previously owned stock so the trade gets a Risk Factor 1.
Sell to Open 10 RH 9/22/17 $74.50 C @ 75¢ ($750)
Getting a 75¢ premium on a $74 stock fits into my “1 Week/1%” strategy, however, it expires tomorrow. If RH doesn’t completely fall off the table, this will be a nice trade.
Steve
The Options Coach