RH (Restoration Hardware) has been running crazy lately and has been up over $2.50 today. I just sold 10 contracts of the 5/5/17 $51.50 Calls for 50¢ ($500). Along with the sale of the Naked Calls I put an order in place to buy the 1000 shares if the stock gets up to $51.30. If it doesn’t get up to my buy order price I’ll remain Naked. The Call expires in 2 days, this Friday. I’m hoping to grab a quick $500. This is a Naked Call, but with the “Stop Limit” buy order in place I give this trade a Rick Factor 2. Here’s the order:
Sell to Open 10 RH 5/5/17 $51.50 C @ 50¢ (+$500)
This trade fits into my “1 Week/ 1%” strategy. However, it’s only a 2 day trade.
Steve
The Options Coach