{"id":3481,"date":"2017-09-12T14:02:34","date_gmt":"2017-09-12T18:02:34","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3481"},"modified":"2017-09-17T22:33:45","modified_gmt":"2017-09-18T02:33:45","slug":"trades-involving-rh-mu-snap","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3481","title":{"rendered":"Trades involving RH, MU & SNAP"},"content":{"rendered":"

Yesterday I made a few moves but did not send out any post. As you all know yesterday was September 11th. And most of you know I’m a retired NYC Firefighter. While we all morn the FDNY took a major hit that day. Well, yesterday I started my day listening to the names being read on TV of all who did not survive that horrific day, 16 years ago. After the names I went to Manhattan to attend some memorials and spend some time with other firefighters who lose so many brother firefighters. For those of you who read my About Me<\/span><\/a> page know I was on the NYC Fire Dept. All Star Basketball team for many years. We lost 4 men from the basketball team alone. In total we lost 343 firefighters who made the supreme sacrifice that day. Even after 16 years it doesn’t \u00a0get better. In fact it seems to get worse. It’s a very difficult day!<\/p>\n

As the names were being read I had my computer open to see what was happening with the market. I put in a few orders for moves I wanted to make and closed my computer. When I got home late last night I looked to see if I was executed on any of my trades and saw that I was. This post is to report the moves that were executed while I was away from my computer yesterday.<\/p>\n

A few weeks ago I opened another account to hold stock. This account will hold stock I’ll use for gifts. I call it my “Gift Account.” I buy stock with the profits from my main trading account and transfer them to this gift account. I put this stock in a separate account because my trading account is a margin account and the “Gift Account” is not. I don’t want to pay margin interest on stock that will be held long term. I’ll use this “Gift Account” for gifts to my nieces, nephews and my grandson and granddaughter. From here forward no more shopping lol. I’ll be gifting shares of stock I’m holding in this account. I’ll be writing more about this account in the near future.<\/p>\n

On 8\/4\/17 I bought 1000 shares of Snap (SNAP), some to be transferred into this account. I did not post about these shares because I don’t post about stock I buy for this gift account. Yesterday I still haven’t transferred these shares so while I still had them in my trading account I decided to sell a Call on the shares to make some premium money. I bought the stock at $13.37 and the stock was at $15.43 when I sold the Call. I sold a 1 week Call. I sold 10 SNAP 9\/15\/17 $16 Call and received a premium of 23\u00a2 for $230. I don’t think the stock will hit $16 by this Friday so I hope I’ll be adding the $230 into my account and still own the stock to transfer to the gift account. Getting 23\u00a2 on a $15 stock fits well into my “1 Week\/1%<\/span><\/a>” strategy. The Rate of Return<\/span><\/a> on this investment is 1.7%. That’s not bad for a 1 week option. This trade in a Covered Call on previously own stock so it’s a Risk Factor 1<\/strong>.<\/p>\n

Sell to Open 10 SNAP 9\/15\/17 $16.00 C @ 23\u00a2 (+$230)<\/p>\n

 <\/p>\n

Next I put in an order to buy 500 more shares of RH. After the great earnings report I think RH will be moving in the next week. I bought this 500 shares at $71.50 but the stock dropped a few bucks with profit taking after I was executed. Today the stock is moving and as I write it’s at $71.25 up $2.77 (4%).<\/p>\n

Buy 500 Shares RH @ $71.50<\/p>\n

 <\/p>\n

With a great reports coming out on Micron (MU) I decided to put in an order to buy 1000 shares. If you read my Results Week Ending 9\/8\/17<\/strong> you saw I had 2500 shares but was assigned on those shares at $32 because of an option I sold. Yesterday I bought another 1000 shares at $32.85. Because I think the stock is going up I’m not going to sell a call just yet. As I write the stock is up to $34.22. Moving nice!<\/p>\n

Buy 1000 Shares MU @ $32.85<\/p>\n

 <\/p>\n

For my last trade that was executed while I was away from the computer yesterday I made another trade with RH. On 9\/7\/17 I bought 500 shares of RH at $68.75. The same day I sold 5 $70 Calls for a premium of $2.25. Yesterday the stock was down so I entered an order to do a “Buy to Close” to get out of the option. I wanted to get out because the premium was down to $1 and I could get out making $1.25. Plus, I believe this stock is going up after the great earnings. I figured if I can get out of the obligation of delivering the stock at $70 and make a nice profit with the premium, let me do it! Again, I think the stock will be higher come Friday.<\/p>\n

As I said, I put in the order to “Buy to Close” the 5 contracts, however, I was only executed on 3 of the contracts. For each share I received $2.25 on my sale and I paid $1 to get out of the contract. On the 3 contracts (300 shares) I made $1.25 per share for a profit of $375. I still have the other 2 contracts so if the stock is above the $70 Strike Price on Friday I’ll have to deliver 200 shares of the stock at $70 and I’ll keep the entire $2.25 premium for the 2 contracts (200 shares).<\/p>\n

9\/7\/17 – Sell to Open 5 RH 9\/15\/17 $70.00 C @ $2.25 (+$1125)<\/p>\n

9\/11\/17 \u2013 Buy to Close 3 RH 9\/15\/17 $70.00 C @ @1.00 (-$300)<\/p>\n

So far I locked in a “premium” profit on 3 contracts. “Sell to Open” 3 contracts at $2.25 (+$6.75) and “Buy to Close” these 3 contracts for $1.00 (-$300) for a profit of $1.25 on the 3 contracts for a gain of $375.<\/p>\n

Profit +$375<\/strong><\/span><\/p>\n

I’ll put this in my mattress<\/p>\n

 <\/p>\n

I’ll be watching RH closely to see what happens to my other 2 contracts and the rest of the shares I own without being connected to any options.<\/p>\n

If something in this post does not make sense please send me an email.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday I made a few moves but did not send out any post. As you all know yesterday was September 11th. And most of you know I’m a retired NYC Firefighter. While we all morn the FDNY took a major hit that day. Well, yesterday I started my day listening to the names being read […]<\/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-3481","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-U9","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3481","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=3481"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3481\/revisions"}],"predecessor-version":[{"id":3523,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3481\/revisions\/3523"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}