I just sold my first options of 2018. On 12\/11\/17 I bought 1000 shares of RH at $102.78. On 1\/3\/18 I bought another 500 shares at $89.75 and on 1\/5\/18 I bought 500 shares at $91.25. I now own a total of 2000 shares.<\/p>\n
On my two purchases of 500 shares at $89.75 and $91.25 I sold 10 contracts of the RH 1\/19\/18 $99 Calls. I received a premium of 75\u00a2 for $750. When I sold these Call the stock was in the $96.10 area. I went out to the $99 Call because I’d rather not get assigned. But, if I do get assigned, I’ll make a nice profit on the stock and I’ll keep my premium. If I don’t get assigned I’ll continue to sell Calls.<\/p>\n
1\/3\/18 \u2013 Buy 500 Shares RH @ $89.75<\/p>\n
1\/5\/18 \u2013 Buy 500 SharesRH @ $91.25<\/p>\n
1\/17\/18 \u2013 Sell to Open 10 RH 1\/19\/18 $99.00 C @ 75\u00a2 (+$750)<\/p>\n
<\/p>\n
This second Call is a little different. After I sold the first Call I wanted to do something with my other 1000 shares but I couldn’t get a nice premium because I bought these shares at $102.78. The $103 premiums were only in the 15\u00a2 area. I decided to take a little chance and sell a $100 Call, a little further out. Once the market is closed today I’ll only have 2 days until expiration. I don’t feel the stock will hit $100 by Friday so I took a chance. I sold the RH 1\/19\/18 $100.00 Call for a premium of 55\u00a2 for $550. If I get assigned I’ll make another $4 on the stock but I’ll take a $2.78 loss on the stock sale. I don’t want the stock to get to $100 and I don’t think it will, but if it does I take the loss and move on. As I write the stock is backing off a little.<\/p>\n
12\/11\/17 \u2013 Buy 1000 Shares RH @ 102.78<\/p>\n
1\/17\/18 \u2013 Sell to Open 10 RH 1\/19\/18 $100.00 C @ 55\u00a2 (+$550)<\/p>\n
<\/p>\n
The first Call is Out-of-the-Money and it’s sold against previously owned stock so it gets a Risk Factor 1.<\/strong><\/p>\n The second Call is an In-the-Money Call but the stock is Out-of-the-Money by $4. Even though the stock is Out-of-the-Money now I still have a chance to lose money if the stock goes above $100, so this trade gets a Risk Factor 3.<\/strong><\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" I just sold my first options of 2018. On 12\/11\/17 I bought 1000 shares of RH at $102.78. On 1\/3\/18 I bought another 500 shares at $89.75 and on 1\/5\/18 I bought 500 shares at $91.25. I now own a total of 2000 shares. On my two purchases of 500 shares at $89.75 and $91.25 […]<\/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-3913","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\/p75MP0-117","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3913","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=3913"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3913\/revisions"}],"predecessor-version":[{"id":3915,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3913\/revisions\/3915"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}