{"id":4311,"date":"2018-06-18T14:45:33","date_gmt":"2018-06-18T18:45:33","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4311"},"modified":"2018-06-18T14:45:33","modified_gmt":"2018-06-18T18:45:33","slug":"huge-week-huge-opportunity-lost","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4311","title":{"rendered":"Huge Week\/Huge Opportunity Lost"},"content":{"rendered":"

I had one trade that came to a conclusion last week. This post will serve as the “Results Week Ending 6\/15\/18” and in addition I’ll talk about Opportunity Lost<\/a><\/span>.<\/p>\n

I’ve been holding 500 shares of RH which I purchased on 1\/23\/18. These shares I bought for $104.25. On 6\/4\/18 I bought another 500 shares at $100.40. I bought the second 500 shares because the earnings report for RH was coming this past Monday and I wanted to play the earnings with 1000 shares. To keep it simple I will average the two 500 shares purchases and call it 1000 shares at $102.32.<\/p>\n

Knowing the earnings report was due out on Monday 6\/11 I sold a 10 contract Call on 6\/5. This Call was to expire on Friday 6\/15. I felt the earnings were gonna be good, and I also felt the stock was going up, both before and after the report. I wanted to pick a Strike Price which would give me a nice premium but would also be out enough so if my prediction was correct I would make a nice gain on my 1000 shares of the stock. When looking at the option chain I really liked the $115 Strike Price. It had a great premium of $3.40, plus it was out to $115, so if assigned I would make a real nice profit on the stock sale. I went with this Call. I sold 10 contracts of the $115 Call for a premium of $3.40 for a total premium of $3400.<\/p>\n

I sold the Call on Tuesday and the earnings report was coming out the following Monday (after the close) and my Call would expire that Friday, 6\/15. By Monday RH was up to $117 with earnings on it’s way after the close.<\/p>\n

The earnings were great and the next day, Tuesday, the stock went up to $165. This was crazy! Now, on Tuesday, with the stock fluctuating in the 160’s I was due to deliver the stock at $115. This is painful! This wasn’t the kind of pain that most options traders feel when they feel pain because on expiration day I would have a lot of money locked in. The $3400 premium, plus the stock gain of $12,680. That comes from buying the 1000 shares at an average of $102.32 and selling at $115, the Strike Price. Stock gain and premium is a total of $16,080. The pain I was feeling was the Opportunity Lost. The Opportunity Lost was the money I didn’t’t make because I sold a Call option. My profit was capped at $115. If I never sold the Call I would have been able to sell the stock in the 160’s. But because I sold the Call I was obligated to deliver the stock at $115. I say it over and over again, I’m in this game for the premiums and I don’t worry about the Opportunity Lost. This trade is a little different because the Opportunity Lost is so large. To the tune of 40 – 50 thousand dollars. O well lol.<\/p>\n

Bought the shares on 1\/23\/18 and 6\/4\/18 for an average of $102.32<\/p>\n

Buy 1000 Shares of RH @ $102.32<\/p>\n

Assigned 1000 Shares of RH @ $115.00<\/p>\n

Profit +$12,680<\/strong><\/span><\/p>\n

 <\/p>\n

6\/5\/18 \u2013 Sell to Open 10 RH 6\/15\/18 $115.00 C @ $3.40 (+$3400)<\/p>\n

6\/15\/18 \u2013 Expired 10 RH 6\/15\/18 $115.00 C<\/p>\n

Profit +$3400<\/strong><\/span><\/p>\n

 <\/p>\n

It’s pretty strange writing about a $16,080 gain and say you’re feeling pain. Believe me, I’m very happy and this money is in my mattress.<\/p>\n

 <\/p>\n

Total Weekly Gain +$16,080<\/strong><\/h4>\n

 <\/p>\n

Any questions, send me an email.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

I had one trade that came to a conclusion last week. This post will serve as the “Results Week Ending 6\/15\/18” and in addition I’ll talk about Opportunity Lost. I’ve been holding 500 shares of RH which I purchased on 1\/23\/18. These shares I bought for $104.25. On 6\/4\/18 I bought another 500 shares at […]<\/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-4311","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\/p75MP0-17x","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4311","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=4311"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4311\/revisions"}],"predecessor-version":[{"id":4312,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4311\/revisions\/4312"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}