This week ended up to be a nice one but it was a little scary on Thursday when RH opened lower on some guidance news. During the day the stock was down as much as $8. Thank God it recovered, and recovered more on Friday and closed the week with the stock a little over $57.<\/p>\n
This week I had a few trades come to a close. All trades involved Micron (MU) and RH. All trade ended nicely. I had Covered Calls on both stocks. I was assigned on MU but was not on RH. With the big dip in RH, it recovered almost to my purchase price but not to my Strike Price. Let’s take a look at the trades.<\/p>\n
Micron<\/strong><\/span><\/p>\n Last week I had a Covered Call on MU, which on last Friday, near the close, it was clear I was going to be assigned on my shares. At the close on 5\/5, knowing I’d be out of that position, I sold a 20 contract Naked Call on MU right at the close. On Monday of this week, 5\/8, with the stock going up I bought 2000 shares at $27.80 to cover that Call. My Strike Price was $28. This week the stock continued up and closed on Expiration Day at $28.93. I was assigned on my shares making 20\u00a2 on the stock for $400. And I keep the premium of the option which was 50\u00a2 for $1000.<\/p>\n \u00a0Sell to Open 20 MU 5\/12\/17 $28 C @ 50\u00a2 (+$1000)<\/strong><\/p>\n Expired 20 MU 5\/12\/17 $28 C<\/strong><\/p>\n Profit +$1000<\/strong><\/span><\/p>\n \n \u00a0Buy 2000 Shares MU @ $27.80<\/strong><\/p>\n \u00a0Assigned 2000 Shares MU @ $28<\/strong><\/p>\n Profit +$400<\/strong><\/span><\/p>\n \n RH<\/strong><\/span><\/p>\n On Monday I entered a 20 contract “Buy-Write” trade with RH. I was executed on the buying of the 2000 shares but I was only executed on selling 3 of the 20 option contracts. This Call had a Strike Price of $60 for a premium of $1. Since I was only executed on 3 Calls the total premium was only $300. The next day with the stock down a little I no longer could get the $1 premium with the Strike Price of $60. I really wanted the $1 so for the other 17 contracts I lowered my Strike Price to $59 and I was able to get the $1. The stock took the big dip on Thursday and never recovered to my Strike Prices of $60 and $59. Both Calls expired and I still own the shares. Below are the two separate Calls. One a 3 contract and the other a 17 contract Call.<\/p>\n \u00a0Sell to Open 3 RH 5\/12\/17 $60 C @ $1 (+$300)<\/strong><\/p>\n \u00a0Expired 3 RH 5\/12\/17 $60 C<\/strong><\/p>\n Profit +$300<\/strong><\/span><\/p>\n \n Sell to Open 17 RH 5\/12\/17 $59 C @ $1 (+$1700)<\/strong><\/p>\n Expired 17 RH 5\/12\/17 $59 C<\/strong><\/p>\n Profit +$1700<\/strong><\/span><\/p>\n \n I still own 2000 shares of RH and I’ll try to sell another 20 contract Call on Monday. I bought the stock at $58.37 and it closed on Friday at $57.04.<\/p>\n <\/p>\n Have a great weekend! Happy Mother’s Day!<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" This week ended up to be a nice one but it was a little scary on Thursday when RH opened lower on some guidance news. During the day the stock was down as much as $8. Thank God it recovered, and recovered more on Friday and closed the week with the stock a little over […]<\/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-3100","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-O0","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3100","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=3100"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3100\/revisions"}],"predecessor-version":[{"id":3101,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3100\/revisions\/3101"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Total Weekly Profit +$3400<\/h4>\n