Last week on 7/1 I bought 500 shares of RH at $138.10. I didn’t get a Call sold last week but at the open today I liked the premiums so I just sold a 5 contract Call. I sold (5) 7/13/18 $139 Calls for a $2 premium. On my 5 contracts that’s a $1000 premium. Where the stock is gonna go this week, who knows? But a $2 premium on with the stock is a nice gain. I bought the stock at $138.10 so it’s a 1 week premium of over 1.4%. This trade fits into my “1 Week/1%” strategy. Let’s keep an eye on RH this week and see how this trade plays out. I think it will be good! As long as RH doesn’t tank lol. This trade gets a Risk Factor 1.
Sell to Open 5 RH 7/13/18 $139.00 C @ $2.00 (+$1000)
I would like to see the stock close this Friday slightly In-the-Money and I get assigned. In addition to the nice premium I’d make another 90¢ on the stock sale for $450.
Steve
The Options Coach