I feel like I’m playing RH like a piano. Today the stock is all over the place. The high for the day is $69.26 and the low is $66. While it was down off it’s highs I decided to enter another 5 contract “Buy-Write.” I entered the stock buy order at $67.10 and I wanted a $1 premium so I entered a $68 Strike Price at the $1. I was executed on the 500 shares and the stock was moving up pretty fast. As it was moving up I changed my $1 premium to $1.10. Not a big deal but it looked like I would get executed so why not grab another 10¢. Hey it’s 50 bucks, it covers my commissions. I was executed and the “Buy-Write” was complete. This “Buy-Write is a Covered Call so it gets a Risk Factor 1. As I write the stock is up to $68.75. As normal I hope to get assigned. If I do this will be a great day and a half trade. Here’s the “Buy-Write” order:
RH “Buy-Write”
Buy 500 Shares RH @ $67.10
Sell to Open 5 RH 7/7/17 $68 C @ $1.10 (+$550)
Steve
The Options Coach
Just to be sure, on the order you have buy at $27.10, is that supposed to be $67.10, or am I missing something?
Yes it’s $67.10. Sorry! I never was a good typist. I’ll send out a correction email. Thanks!