{"id":3074,"date":"2017-05-04T09:40:55","date_gmt":"2017-05-04T13:40:55","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3074"},"modified":"2017-05-04T09:40:55","modified_gmt":"2017-05-04T13:40:55","slug":"covered-rh-call-with-stop-limit-order","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3074","title":{"rendered":"Covered RH Call with &#8220;Stop Limit&#8221; Order"},"content":{"rendered":"<p>Yesterday I sold 10 Naked contracts of RH Calls, you can read this trade at<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.mainstbeatswallst.com\/?p=3072\"> Sold 10 Call on RH<\/a><\/span>. When I made that trade I placed a &#8220;Stop Limit&#8221; order to buy the shares. When I sold the Call the stock was at $51.05 and my Strike Price was $51.50. I put the &#8220;Stop Limit&#8221; order to buy the stock at $51.30. If the stock went down I would remain in a Naked Call position. If the stock went up to $51.30 I would automatically buy the 1000 shares to cover my Call. Late in the day the stock jumped up and closed at $51.75. While the stock was moving up and hit the $51.30 price, my broker bought the stock for me. Now I&#8217;m in a Covered Call position. When I made the trade I put on a <strong>Risk Factor 2<\/strong> but now that I have a Covered Call, it is now a <strong>Risk Factor 1<\/strong>. Here&#8217;s the buy order:<\/p>\n<h4 style=\"text-align: center;\">Buy 1000 Shares RH @ $51.30<\/h4>\n<p>&nbsp;<\/p>\n<p>This RH Call expires tomorrow.<\/p>\n<p>&nbsp;<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday I sold 10 Naked contracts of RH Calls, you can read this trade at Sold 10 Call on RH. When I made that trade I placed a &#8220;Stop Limit&#8221; order to buy the shares. When I sold the Call the stock was at $51.05 and my Strike Price was $51.50. I put the &#8220;Stop [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-3074","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-NA","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=3074"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3074\/revisions"}],"predecessor-version":[{"id":3075,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3074\/revisions\/3075"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}