{"id":3846,"date":"2017-12-18T13:04:58","date_gmt":"2017-12-18T18:04:58","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3846"},"modified":"2017-12-18T13:04:58","modified_gmt":"2017-12-18T18:04:58","slug":"20-contract-call-sold-on-rh","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3846","title":{"rendered":"20 Contract Call sold on RH"},"content":{"rendered":"

\"\"<\/a><\/p>\n

As most of you know, I own 2000 shares of RH. I bought the shares at 3 different times adding up to 2000 shares. On 12\/11 I bought 1000 shares at $104.60. Also on 12\/11 I bought 500 shares at $102.60, and on 12\/12 I bought another 500 shares at $99.30. As the stock was moving down I was lowering my average buy-in price. The result is I own 2000 shares and my average price per share is $102.78. To keep things simple, In my “Active Trades\/Current Positions<\/strong>” I will list my position as bought 2000 shares at $102.78.<\/p>\n

With the market up today RH is on the move. As I write, the stock is up 3%, +$2.98 to $102.61. I just sold a 20 contract $104 Call expiring this Friday for a premium of $1.75 (+$3500).<\/p>\n

Sell to Open 20 RH 12\/22\/17 $104 C @ $1.75 (+$3500)<\/h4>\n

 <\/p>\n

I’m in the 2000 shares at $102.78. If I get assigned I’ll make $2440 on the stock sale, plus the $3500 premium for a total of $5940. This would be a great trade and this is what I want to happen.<\/p>\n

If the stock stays below my Strike Price of $104 I will not be assigned. I’ll keep my 2000 shares and I’ll keep the $3500 premium. Either way I’ll be happy. The only thing that can throw a monkey wrench into the success of this trade is if the stock tanks and moves down big.<\/p>\n

This is a Covered Call on previously owned stock so the trade gets a Risk Factor 1<\/strong>.<\/p>\n

I’ve had a great year and I want to hold onto my gains to start fresh on Jan 1, 2018, so quite possibly this will be my only trade of the week.<\/p>\n

You might have noticed I didn’t send out a weekly results for last week. The reason is I didn’t make any trades.<\/p>\n

 <\/p>\n

 <\/p>\n

Steve<\/p>\n

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

As most of you know, I own 2000 shares of RH. I bought the shares at 3 different times adding up to 2000 shares. On 12\/11 I bought 1000 shares at $104.60. Also on 12\/11 I bought 500 shares at $102.60, and on 12\/12 I bought another 500 shares at $99.30. As the stock was […]<\/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-3846","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\/p75MP0-102","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3846","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=3846"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3846\/revisions"}],"predecessor-version":[{"id":3847,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3846\/revisions\/3847"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}