On Wednesday, March 28th I sold a 5 Contract Covered Call on RH. It’s the only trade I have to report for the week ending 3\/29\/18. This was a 1 day option because last week was a shortened trading week with the markets closed on Good Friday. Owning 2500 shares of RH, I only sold a 5 contract Call for a few reasons. One, the 500 shares I used to cover this Call I bought at $93.50. I could not risk the other 2000 shares at a Strike price where I could get a decent premium. The rest of my shares I bought for over $100 per share and this Call I sold with a $95 Strike Price. If I sold a Call with all my shares involved and getting assigned at $95 I would have taken a loss on the stock sale with assignment. Two, I wanted to reduce the size of my position by 500 shares so I entered this trade looking to get assigned. I picked a Strike Price of $95 because it had a nice premium, plus, the way RH is moving after earnings, I felt I would be assigned. Buying these 500 shares at $93.50 and getting assigned at $95 would give me a profit on the stock sale in addition to getting the nice premium.<\/p>\n
This is just what happened with my only trade of the week. I collected a nice premium, made a profit on the stock sale and reduced my RH position from 2500 shares to 2000 shares.<\/p>\n
\n
2\/14\/18 \u2013 Buy 500 Shares RH @ $93.50<\/p>\n
3\/29\/18 – Assigned 500 Shares RH @ $95.00<\/p>\n
Profit +$750<\/strong><\/span><\/p>\n <\/p>\n 3\/28\/18 – Sell to Open 5 RH 3\/29\/18 $95 C @ $1.50 (+$750)<\/p>\n 3\/29\/18 – Expired 5 RH 3\/29\/18 $95.00 C<\/p>\n \u00a0Profit +$750<\/strong><\/span><\/p>\n <\/p>\n I am very happy with the movement of RH after earnings. I was able to get out of 500 shares at a profit to reduce my position. Now if RH can continue to move up to where I can sell a few more Call and eventually get out of my remaining 2000 shares at a profit, it would be great!…… Stay tuned!<\/p>\n <\/p>\n <\/p>\n If you have any questions on my RH moves or strategy going forward, please email me.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/p>\n","protected":false},"excerpt":{"rendered":" On Wednesday, March 28th I sold a 5 Contract Covered Call on RH. It’s the only trade I have to report for the week ending 3\/29\/18. This was a 1 day option because last week was a shortened trading week with the markets closed on Good Friday. Owning 2500 shares of RH, I only sold […]<\/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-4154","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\/p75MP0-150","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4154","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=4154"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4154\/revisions"}],"predecessor-version":[{"id":4155,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4154\/revisions\/4155"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Total Weekly Gain +$1500<\/h4>\n