Last week I sold a 20 contract Call on 2000 shares of RH I own. For that Call I received a $1.00 premium. The stock went down and the premium went down to 40¢. And when it did, I did a “Buy to Close.” I sold for a $2000 premium and I closed the deal for $400 for a $1600 profit. A day later I sold another Call with a premium of 50¢ for a total premium of $1000. This Call expired and I wasn’t assigned. Today I just sold another 20 contract Call against the 2000 shares I still own for another premium of $1.00 for another $2000 premium. This was a 20 contract 10/6/17 $73.50 Call. RH is still a very high rated stock, especially since their good earnings report so I don’t think it will tank. I hope I can keep the premiums coming in on this very volatile stock.
Sell to Open 20 RH 10/6/17 $73.50 C @ $1.00 (+$2000)
Will RH hit $73.50 by Friday? Stay tuned!
Steve
The Options Coach