RH shot up to $105. I just sold a 5 contract 1/26/18 $105 Call. I felt the stock was going to go down because it hit the $105 resistance so I sold this Call naked. I will watch closely to see if and when I should cover this Call. This is crazy but when I sold the Call the stock was at $104.90 and as I’m writing it’s already down to $103.80. I think I’ll be covering soon. This is a Naked Call on a hot, very volatile stock so at the moment it’s a Risk Factor 5. The stock’s 8 day moving average just crossed to the south of the 50 day moving average so it might go down a little more. Right now I’m looking at the 1 minute Candlestick Chart. The 1 minute chart is used by day traders.
Sell to Open 5 RH 1/26/18 $105.00 C @ $2.10 (+$1050)
Stay tuned!
Steve
The Options Coach