If you read my post yesterday “RH Buy-Write,” you know I put in an order to sell 20 contracts of the RH 5/12/17 $60 Calls for a premium of $1. I was only executed on 3 of the 20 Contracts. This morning Looking at the Option Chain the premium for the $60 Calls was only 50¢. I bought the stock at $58.37 and I really wanted the $1 premium so I dropped down on my Strike Price and put in my order to sell the other 17 contracts with the Strike Price of $59. It took a few minutes but the stock moved a bit and I was executed on the selling of the Calls. I now own 2000 shares of RH at $58.37 and have 3 Short Call contracts with the Strike Price of $60 and 17 contracts with the Strike Price of $59. All the contracts expire this Friday and I received a $1 premium for all 20 contracts for a total of $2000. Here’s the order for today’s 17 contracts:
Sell to Open 17 RH 5/12/17 $59 C @ $1 (+$1700)
This trade I sold Calls against previously owned stock (bought yesterday) to make a Covered Call so it gets a Risk Factor 1.
Steve
The Options Coach
Wow, amazing blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your website is magnificent, let alone the content!
“Main Street beats Wall Street” started Jan. 1st, 2016. That’s when I started blogging. Thanking for reading.