{"id":4440,"date":"2018-08-06T11:58:57","date_gmt":"2018-08-06T15:58:57","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4440"},"modified":"2018-08-06T11:58:57","modified_gmt":"2018-08-06T15:58:57","slug":"4th-week-of-my-rh-1-contract-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4440","title":{"rendered":"4th Week of My RH 1 Contract Call"},"content":{"rendered":"

Hi Readers, I just sold an RH 1 contract Call. I bought 100 shares of RH at $133 on 7\/18\/18, and this is my 4th week in a row that I sold the same Call. I’ve been selling the $139 Call to expire the Friday of that week. The Call I just sold will expire this Friday. For you beginners, this is a perfect Grasshopper<\/a><\/span> trade. I bought the 100 shares for $13,300. The stock has been hanging between $133 and $139. Luckily, the stock has been trading at the high range in the beginning of the week where I was able to get the Call sold for a nice premium. If the stock is at it’s high range the premiums will be the highest, plus, if it happens on Monday, like today, with more time until expiration, the premium will have more time value for a higher premium. I hope this make sense! If not you must send me an email. Again, today, with the stock in it’s high range, I just sold the 1 Call for a premium of $2. That’s $200! A lot? No! But it is a 1.5% premium for a 1 week trade. this fits into my “1 Week\/1%<\/a><\/span>” strategy. With the stock at $133, which is where I bought, you can invest $133,000 for 1000 shares and receive a premium of $2000, OR you can buy 100 shares for $13,300 and get a premium of $200. How much money do you have to invest and Risk? Either way you get a Rate of Return<\/a><\/span> of 1.5%. This is the key! As I mentioned in my last post, my father used to invest in CD’s. He would lock up 5 or 10 thousand dollars for a year or 2 and get a return of 3 to 5% (annually). With this trade I’m getting 1.5% in 1 week, and I’ve been doing it for the last 4 weeks. If I do it all year it will be a 78% return! If you have a “get rich quick” mentality this might not excite. Me? I love it! You must be a disciplined trader. If not you will lose money, PERIOD! When it comes to this trade, I went with 100 shares because I have money tied up elsewhere. But I love it just as much as if I had 1000 shares. Its still 1.5% return. The quicker you get into “Rate of Return” the better off you’ll be.<\/p>\n

 <\/p>\n

Sell to Open 1 RH $139.00 8\/10\/18 C @ $2.00 \u00a0(+$200)<\/h4>\n

 <\/p>\n

Let’s see how this weeks trade works out. Will I get assigned? If I do I make another $600 on the stock sale.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Hi Readers, I just sold an RH 1 contract Call. I bought 100 shares of RH at $133 on 7\/18\/18, and this is my 4th week in a row that I sold the same Call. I’ve been selling the $139 Call to expire the Friday of that week. The Call I just sold will expire […]<\/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-4440","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\/p75MP0-19C","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4440","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=4440"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4440\/revisions"}],"predecessor-version":[{"id":4441,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4440\/revisions\/4441"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}