With 1 more day until expiration I just sold a Call on RH and SNAP.
RH
On Tuesday I sold a Call on RH and yesterday I did a Buy to Close making a $650 profit. Today the stock went back up and I was just executed on a 10 contract 12/1/17 $102 Call for a premium of $1.15. On Tuesday I sold for a premium of $1.10 and did a Buy to Close for 45¢ making the $650 and today I got another $1.15 ($1150). I’m hoping I get executed on this Call because RH reports earnings next week. This stock is so volatile I don’t want to gamble. I don’t want to hold the stock thru earnings and possibly do Straddle into earnings.
Sell to Open 10 RH 12/1/17 $102.00 C @ $1.15 (+$1150)
SNAP
I also own 1000 shares of SNAP. If you remember a few week ago I sold a $14 Put and was assigned keeping the $650 premium. Now that I own the shares as a result of my Put the stock has been down. In fact, when I was put the stock at $14 the stock was at $12.50. The stock recovered a bit and today is hanging around $13.90. I want to get out of the shares at $14 so I figured I might as well receive a premium for selling. I’m hoping the stock goes above $14 tomorrow and I get assigned. I didn’t get much of a premium, it was 15¢ ($150). It doesn’t sound like much but it is 15¢ on a $13.90 stock which is over 1% for a 1 day trade. Like I said, I’m hoping to get assigned so I can put that money to work elsewhere.
Sell to Open 10 SNAP 12/1/17 $14 C @ 15¢ (+$150)
Steve
The Options Coach