This past Friday I was assigned on 2500 shares of RH as a result of the stock closing above my Strike Price. It ended up being one of my most profitable weeks ever. Today, I started the week looking to get back into RH.<\/p>\n
Back on 12\/11\/17 I bought 1000 shares of RH at $102.78. Last week with the stock at $95 I sold a 10 contract, $100 Call. I was well aware of the possibility of getting assigned at a price lower than where I bought the stock. I didn’t think the stock would hit the $100 Strike Price, but if it did. I also didn’t think it would go much higher than $102 if it did get up to that price.. The stock closed on expiration day at $100.27. I was assigned at $100 taking a $2.78 loss on the stock sale. I felt very strongly if that happened I’d be able to get back in today at a similar price to have a shot at making back the $2.78 loss. Well the stock opened today choppy as usual. The stock dropped to $99.90 and I bought my 1000 shares back. If the stock gets up to $102.78 I’ll get my $2.78 loss back into my account. Let’s watch this week and see what happens.<\/p>\n
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I was thinking of buying 2000 shares but I decided to do something else. It’s clear I am bullish on RH. Instead of buying another 1000 shares at $99.90 I sold a $99.50 Put. I know I don’t make many Put trades but I really liked the Puts in this situation for a few reasons. One is I was willing to buy at $99.90, which I did, so I’m also willing to buy 1000 shares at $99.50. By selling this Put, I’m will to buy the stock at $99.50 anytime this week. The premium I received for someone to sell me their stock this week at $99.50 is $2.50. On the 10 contracts I received a total premium of $2500. For a stock I’m very bullish on, I like this deal. Another reason I went with the Put instead of buying the other 1000 shares now is, when selling a Put I don’t pay margin interest. You don’t pay margin interest until you buy the stock. However, I’m still able to bring in a very nice premium ($2500). You know I’m in this game for the premiums!<\/p>\n
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If you have any questions on how Puts work please send me an email.<\/p>\n
The title of this post started as “2 RH Moves.” I just changed it to “3 RH Moves.” As I was writing I entered a 10 contract “Sell to Open” Call order on the 1000 shares of RH I just bought at $99.90. I placed the order to sell 10 contracts of the RH 1\/26\/18 $104 Call for the premium of $1.50. As I was writing the stock shot up to $102 and I was executed on this order. I now just made 3 moves with RH.<\/p>\n
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If the stock moves much more I might make a 4th move soon. I might “Buy to Close” my Put position. I received $1.50, if I can get out for $1.50 I will, with a quick $1000 profit. Stay tuned!<\/p>\n
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Steve<\/p>\n
The Options Coach<\/em><\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" This past Friday I was assigned on 2500 shares of RH as a result of the stock closing above my Strike Price. It ended up being one of my most profitable weeks ever. Today, I started the week looking to get back into RH. Back on 12\/11\/17 I bought 1000 shares of RH at $102.78. […]<\/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-3944","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\/p75MP0-11C","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3944","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=3944"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3944\/revisions"}],"predecessor-version":[{"id":3945,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3944\/revisions\/3945"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}