For the Main Street beats Wall Street loyal readers, you probably know I’ve been closing my option positions today. With the market down I was able to get out of all my Calls and now only own stock. As you may know, if I can get out of a position (I sold) and keep half my premium, I like to do so. At this point I’m out of all my obligations of delivering stock this week. I don’t think this is the big pull-back many are talking about. I think the stocks will be rebounding tomorrow. If not, today before closing. With this in mind, I plan on selling more Calls. If I don’t sell more Calls, I hope to hold the stock and they go higher without options attached to them. If the stock don’t go higher, I still pulled in a profitable premium getting out early.
10/20/17 – Sell to Open 10 RH 10/27/17 $85.00 C @ $1.25 (+$1250)
10/25/17 – Buy to Close 10 RH 10/27/17 $85.00 C @ 60¢ (-$600)
Profit +$650
Let’s watch and see what happens!
Steve
The Options Coach