{"id":3469,"date":"2017-09-07T12:04:44","date_gmt":"2017-09-07T16:04:44","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3469"},"modified":"2017-09-07T12:04:44","modified_gmt":"2017-09-07T16:04:44","slug":"rh-buy-write-4","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3469","title":{"rendered":"RH Buy-Write"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1635\" data-permalink=\"https:\/\/www.mainstbeatswallst.com\/?attachment_id=1635\" data-orig-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-orig-size=\"75,90\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Risk1\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" class=\"wp-image-1635 alignleft\" src=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?resize=91%2C109\" alt=\"\" width=\"91\" height=\"109\" \/><\/a>What a wild run for RH after the earnings announcement after the close yesterday. The stock is up 41%. Crazy! With the stock up and starting to level off a bit I just sold a 5 contract Buy-Write. I bought 500 shares at $69.75 and sold 5 contract of the 9\/15\/17 $70 Calls for a premium of $2.25. Thats $1125 on the 5 contracts. Getting a $2.25 premium on a $69.75 stock is a 3.2% return for a 9 day Call. If I get assigned it will be 3.5% because of the stock sale. I really don&#8217;t think RH will be at $70 in 9 days. Where it will be after such a huge run up is anyone&#8217;s guess. I think, with the great earnings, in the long term the stock will go up over $75 but there could be a pullback in the short term with some profit taking. This is a Covered Call on a very hot stock so I give this trade a <strong>Risk Factor 1<\/strong>. I think it&#8217;s a very safe trade but there could be a big <a href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=363\"><span style=\"color: #0000ff;\">Opportunity Lost<\/span><\/a>. No problem!<\/p>\n<p style=\"text-align: center;\">\u00a0<span style=\"text-decoration: underline;\"><strong>RH Buy-Write<\/strong><\/span><\/p>\n<p style=\"text-align: center;\">Buy 500 Shares RH @ $69.75<\/p>\n<p style=\"text-align: center;\">Sell to Open 5 RH 9\/15\/17 $70 C @ $2.25 (+$1125)<\/p>\n<p>&nbsp;<\/p>\n<p>This should be an interesting week for RH! As I write the stock is already up to $71. lol Unbelievable!<\/p>\n<p>&nbsp;<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What a wild run for RH after the earnings announcement after the close yesterday. The stock is up 41%. Crazy! With the stock up and starting to level off a bit I just sold a 5 contract Buy-Write. I bought 500 shares at $69.75 and sold 5 contract of the 9\/15\/17 $70 Calls for a [&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-3469","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-TX","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3469","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=3469"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3469\/revisions"}],"predecessor-version":[{"id":3471,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3469\/revisions\/3471"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}