Results Week Ending 12/22/17

Today is Christmas Eve. Merry Christmas to everyone!

I reported in a recent post that I was trying to lay low until the start of 2018. I really had a great year and I’m trying to keep the profits to end the year and start a new year on a good note. With this in mind I only made one trade this week. And it was a good one! I do own a bunch of stock but I only sold a Call on my 2000 shares of RH. I have 2000 shares at $102.78 and I sold a 20 contract Call. I sold the 20 contracts with a $104 Strike Price expiring this Friday giving me a $1.75 premium for a total of $3500.

12/18/17 – Sell to Open 20 RH 12/22/17 $104 C @ $1.75 (+$3500)

12/22/17 – Expired 20 RH 12/22/17 $104.00 C

  Profit +$3500

 

I was hoping for the stock to go up above my Strike Price so I would be assigned. This did not happen! I do keep my $3500 premium but the stock came down a bit and closed at $92.92. This is always a big fear when selling Covered Calls. You keep the premium, but you own the stock at a lower price. This is why I like to get assigned and move on. Many, or most, Covered Call sellers want to keep their stock at expiration, but I have a different strategy. I want to keep my premium, make a little on the stock assignment, and move on. In this situation RH is a great stock with a great rating so I’m not too worried. However, you never know. The stock can always stay down a bit to keep your money tied up for a while. In this case I don’t think that will happen. I’m looking for RH to be back up to where I can sell another Call within a few days….I Hope!

 

I would like to wish the entire Main Street beats Wall Street family a very Merry Christmas.

Back to work on Tuesday.

 

Steve

The Options Coach