Today, near the close, I was filled on an order I placed to sell 1 RH Call.
I closed my computer about 2pm today because I had to leave my home. Today is my son in-law Bob’s birthday. Bob is a contributing writer for Main Street beats Wall Street. He writes in the section “Advanced Technical Analysis.” He lives about an hour from me so I had to leave home before the close of the market to get there in time for an early dinner.
As you might know I’ve been trying to sell an option on my 100 shares of RH, a Grasshopper trade. Earlier in the day I placed an order to sell one contract of the RH 5/3/19 $108 Call. I wasn’t filled on the order until I was away from my computer. This is why I’m reporting the trade now. It wasn’t a big money trade, I only received a premium of $1.50 for $150. With the stock a little above $108 I was filled. I believe the stock was at about $108.40. I was actually going to sell the stock at $107.50 but I figured I’d sell the 1 day Call and try an pick up a few more bucks. I bought the stock at $105.50. If I get assigned I’ll make $2.50 on the stock and $1.50 premium. If I get assigned my profit will be $4 on 100 shares for $400. I’ll take it!
Sell to Open 1 RH 5/3/19 $108.00 C @ $1.50 (+$150)
Like I said, I bought the stock at $105.50 and I’m bringing in a 1 day premium of $1.50. That’s a Rate of Return of 1.4%. Also this is the 2nd Call I sold on the stock since I purchased this 100 shares on 4/24. This is a great example of a Grasshopper Trade. And a great trade to make to learn the ropes of this game.
Let’s see if I get assigned tomorrow.
Steve
The Options Coach