{"id":4296,"date":"2018-06-05T12:25:43","date_gmt":"2018-06-05T16:25:43","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4296"},"modified":"2018-06-05T12:25:43","modified_gmt":"2018-06-05T16:25:43","slug":"sold-10-rh-calls-with-earnings-coming","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4296","title":{"rendered":"Sold 10 RH Calls With Earnings Coming"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3-1.png\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1552\" data-permalink=\"https:\/\/www.mainstbeatswallst.com\/?attachment_id=1552\" data-orig-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3-1.png?fit=75%2C88&amp;ssl=1\" data-orig-size=\"75,88\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Risk3\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3-1.png?fit=75%2C88&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3-1.png?fit=75%2C88&amp;ssl=1\" class=\" wp-image-1552 alignleft\" src=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3-1.png?resize=95%2C111\" alt=\"\" width=\"95\" height=\"111\" \/><\/a>Yesterday I sold my 500 shares of Square. I felt it was gonna start running out of gas, or at least level off. I decided to take that money and put it in RH. So when I sold the 500 shares of SQ I bought 500 shares of RH. SQ is down today but up a little since I sold yesterday. However, RH is up $5 since I bought yesterday.<\/p>\n<p>I now own 1000 shares of RH with earnings coming this Monday. I decided to play the earnings for the huge premium. With the stock at $104.50 I sold the $115 Call for a premium of $3.40. This option will expire next Friday and I received a premium of $3400 on my 10 contracts. Many feel the earnings will be great, but that really means nothing. The way I&#8217;m looking at this is if the earnings are good the stock can go up big. If the stock goes up to my Strike Price of $115 I will make another $10,000 on the stock, plus the $3400 premium. If the earnings are not good the stock will go down, however, I&#8217;m bringing in a $3400 premium to hedge the possible loss. And if the stock does go down I don&#8217;t think it will stay down very long.<\/p>\n<h4 style=\"text-align: center;\">Sell to Open 10 RH 6\/15\/18 $115.00 C @ $3.40 (+$3400)<\/h4>\n<p>&nbsp;<\/p>\n<p>This trade is a Covered Call and would normally gat a Risk Factor 1 but with earnings coming there is a little more risk. I give this trade a <strong>Risk Factor 3<\/strong>. RH is a very volatile stock and with bad earnings the stock can flop $20. Let&#8217;s hope that doesn&#8217;t happen.<\/p>\n<p>&nbsp;<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday I sold my 500 shares of Square. I felt it was gonna start running out of gas, or at least level off. I decided to take that money and put it in RH. So when I sold the 500 shares of SQ I bought 500 shares of RH. SQ is down today but up [&hellip;]<\/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-4296","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\/p75MP0-17i","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4296","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=4296"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4296\/revisions"}],"predecessor-version":[{"id":4297,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4296\/revisions\/4297"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}