Sold 20 RH Calls/Last week’s results

My basketball season is in full swing and my free time is cut to almost nothing. In the gym 7 days a week! Because of this I didn’t get my” Results Week Ending 11/11/17” posted. You can look at my trades and results on my page “Trade History 2017.” Scroll all the way down to the bottom. I had a nice week with only 3 three trades. If you want to look at the trades and what I wrote, you can go to the “Blog” section in the top menu bar. My total weekly gain was +$4450. Can’t complain about that!

I noticed I forgot to post a trade last week. On 11/7/17 I bought another 1000 shares of RH at $85.95. I now have 2000 shares. 1000 at $81 and 1000 at $85.95. I was just executed on a 20 contract Call with RH. I sold 20 contracts of the 11/17/17 $90 Calls for the whopping premium of $3.20. This Call brought me in a total premium of $6400. This, very possibly, could be my only trade of the week.

Sell to Open 20 RH 11/17/17 $90.00 @ $3.20 (+$6400)

 

As I write the stock is at $87 and it was at $87 when I was executed. If I get assigned I’ll make another $4000 on the stock from here. You know I’m in the stock at $81 and $85.95. I would make a lot more on the stock than the $4000 I just mentioned. The $4000 would be from the point where I sold the Call. This could turn out to be a great trade. This trade is a Covered Call on previously owned stock so it gets a Risk Factor 1.

 

Steve

The Options Coach

6 comments on Sold 20 RH Calls/Last week’s results

  1. Two things about RH:

    Earning announce only a few weeks away; Dec 6

    and an article headline that says AMZN will overpay to acquire RH…..

    1. The story about Amazon and RH came out in June when analyst Anthony Chukumba said RH should be a good target. Earnings come out Dec 7th, after the close. I’ll be doing something, possibly a straddle.

  2. Did you notice RH just went through the roof on increased guidance from the company ?

    At 3:34 I sold a 17th naked put; $85 and received a $5.50 premium.

    I felt most of the down side was rung out today, didn’t know guidance was coming.

    Looks like I am not going to be assigned this stock…. 🙁

    Got to be lucky sometime….

    1. Did I notice?! I’ll have a bit of an Opportunity Lost but I’ll do very well. Yesterday the stock closed at $83. I have 2000 shares. I have 20 contracts of the $90 Calls sold. So, today I’ll profit from $83 to $90 which is $14,000 plus I brought is a $6400 premium. A nice $20,000 day!

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