I was just executed on a 2 day “Buy-Write” with RH. I bought 1000 Shares at $75.90 and sold 10 contracts of the RH 10/6/17 $76 Call receiving a $1 premium ($1000). This trade is a 2 day Covered Call so I give it a Risk Factor 1.
Buy 1000 Shares RH @ $75.90
Sell to Open 10 RH 10/6/17 $76.00 Call @ $1 (+$1000)
I would like to see the stock stay above the Strike Price of $76 for the close tomorrow, expiration day. Either way, I’m keeping the $1000 premium. I would like to get assigned so I don’t keep the stock over the weekend. If this happens I keep the premium of $1000 plus make 10¢ on the stock for an additional $100. The premium alone is a 1.3% return on a 2 day play.
Steve
The Options Coach