Earlier in my post I talked about my Long Call I bought with RH. RH is a splitting stock and I’m using my split strategy to take advantage of the volatility and the movement a stock makes when they announce a stock split. RH does not have a split date yet but they announced they will be making a 3:1 split in the 2nd quarter.<\/p>\n
Yesterday I bought 1 RH 6\/17\/22 $330 Call for a premium of $32. Today the stock is on the move and it got up as high as $350. When the stock was at $344 I placed an order to Sell to Close<\/strong> my position for $43. This would give me an $1100 profit in 1 day on the 100 shares the 1 contract represents. When the stock got up to $350 I was filled on my order at $43.<\/p>\n I was only in this position for 1 day, and it would not have expire until 6\/17, but I placed the order at $43 which gives me a nice profit. Yes I could have held because of the time I had left until expiration but with options, and a volatile market, you never know what can happen. If the stock took a $50 drop I’d be stuck in the position as my Time Decay kills me.<\/p>\n Now if there is a drop I’ll be ready to jump back in. If it doesn’t pull back I jump back in at a later date with an Expiration Date out a little further. Either way I locked in $1100 in 1 day.<\/p>\n <\/p>\n 4\/18\/22 \u2013 Buy to Open 1 RH 6\/17\/22 $330.00 C @ $32.00<\/strong><\/p>\n 4\/19\/22 \u2013 Sell to Close 1 RH 6\/17\/22 $330.00 C @ $43.00 <\/strong><\/p>\n <\/p>\n This $1100 profit is on a $3200 investment. This is a return of 34.3%. I’ll take it for 1 day.<\/p>\n Any question on my split strategy send me an email.<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Earlier in my post I talked about my Long Call I bought with RH. RH is a splitting stock and I’m using my split strategy to take advantage of the volatility and the movement a stock makes when they announce a stock split. RH does not have a split date yet but they announced they […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-13322","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3sS","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13322"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13322\/revisions"}],"predecessor-version":[{"id":13325,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13322\/revisions\/13325"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$1100\u00a0<\/strong><\/span><\/h4>\n