Back in RH Calls

If you read my most resent weekly results, you know I had an $87 Call expire this past Friday. The stock closed at $86.64 and I wasn’t assigned. Today the stock is on a crazy run, and continues to run higher as I write. A little while ago, when the stock was at $88.75 I sold 10 contracts of the 11/3/17 $91 Call. I received a $2 premium for $2000. This trade is a Covered Call on previously owned stock so it’s a Risk Factor 1.

 

Sell to Open 10 RH 11/3/17 $91.00 C @ $2.00 (+$2000)

 

As I write the stock is already above $90.

 

Steve

The options Coach

5 comments on Back in RH Calls

  1. I am a bit underwater on SHOP but I purchased some additional shares as it was bouncing back.

    It took a hit because of one Short Sells Tweet which had no merit.

    This stock is somewhat volitile anyway.

    Earnings announced tomorrow.

    I sold Nov 17 $115 Calls for $3.20 each.

    Stock is running sideways right now.

  2. I bought 700 shares of RH at $87.80. When it went over $88 I sold 7 CC $91 contracts. Set my asking price at $1.70, above current bid by 10 cents and it got filled.

    Not looking to make a killing, just put a few $$ in my pocket part time right now.

    But if success continues, I may be quitting…. 😉

  3. Well SHOP got clobbered when things opened, down as much as $14. But it appears their earning were good, a beat expectations.

    So I hung in there but bought back the CC I had sold. I was paid $3.30 for it, bought it back for 70 cents.

    My expectation is that SHOP will begin recovering and I will look at selling another CC.

    MU is doing nicely, haven’t sold a CC on it yet. But will today.

  4. Yes, that’s the problem with being involved with stocks when earnings are announced. Even with a good report you never know what’s gonna happen. Hopefully it will return back up and you can get another Call sold. Good luck.

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