Hi All, Today is Thursday the 19th. Yesterday morning at about 6am I left NYC to travel with my wife to Wisconsin. She was going to visit some college friends and she asked me to tag along. A said, “what da hell, I’ve never been to Wisconsin.” We left Newark to fly into Duluth, Minnesota. Duluth is just across a bridge from Wisconsin. Similar distance that Newark is from NYC. The only difference is when you go from Duluth to Wisconsin there’s no toll lol. A bridge or tunnel to Jersey from NY is $15.
We got to Duluth via Chicago. In Chicago we had a 2 hour lay over, and a change of planes. While in Chicago we were in the United Airlines Presidents Club for a comfortable wait. The Presidents Club has wifi so I opened my computer to see what the market was doing. I noticed RH was down a few dollars. Since I was assigned on my RH shares this past Friday at $139, I no longer hold RH. I’m trying to stay away until things settle down with the trade situation with China. RH gets a lot of it’s supplies from China.
With RH down from where I was assigned at $139 – while sitting in the Presidents Club- I decided to take a small position because I felt it was reversing and was gonna go up. I bought 100 shares of RH at $133. I felt maybe I could make a few hundred bucks while traveling.
Getting ready to catch our connecting flight I placed an order to sell 1 Call of the RH $136 Call with a $2 premium. This was a 3 day Call. I figured, if I get assigned, I’ll make $300 on the stock and get the $200 premium. Not bad! $500 while traveling.
This morning, Irene and I are at one of her friend’s places on Lake Superior. I just opened my computer for the first time. I noticed I was not filled on my order to sell the 1 Call. The order was not a “Good til Cancel” so it was closed at the close of the market. However, today RH is up over $3.50. When I started writing this post, with RH at $137 and change, I placed another order to sell that 1 Call to expire tomorrow. This time I placed a 1 contract $139 Call for a $1 premium. As I’m writing I was just filled. And RH is still moving up. If I get assigned at the $139 Strike Price I’ll make $600 on the stock and the $100 premium. I would like that!
I now have an RH Covered Call. Here are the orders. This trade gets a Risk Factor 1.
RH Covered Call
Buy 100 Shares RH @ $133.00
Sell to Open 1 RH 7/20/18 $139.00 C @ $1.00 (+$100)
I’m sorry I’m late with this post for the buying of the 100 shares. Traveling had me busy! Now I doing a little work on my site and watching the market, looking out the window at a beautiful lake.
It looks like RH can hit my Strike Price today. As I’m about to send this post it’s at $138.38.
Steve
The Options Coach