“Sell to Close” 3 RH Calls

Last week on 4/30 I bought 6 RH 1/15/21 $140 Calls. I paid a $37.50 premium. With the volatility continuing the market is up today. Sticking with my “take profit” philosophy, I sold half of this position. I sold 3 RH 1/15/21 $140 Calls for a premium of $42.

4/30/20 – Buy to Open 3 RH 1/15/21 $140.00 C @ $37.50 

5/7/20 – Sell to Close 3 RH 1/15/21 $140.00 C @ $42.00

Profit +$1350

I took a $1350 profit, but since RH has been moving nicely I kept 3 of the Calls. So far this investment gave me a Rate of Return of 12%. Let’s see what the other 3 Calls do for me. They don’t expire until Jan 2021. I have plenty of time. As you get better with options you will see, when buying options, time is everything.

Successful Trading,

Steve

The Options Coach