Yesterday I bought 1000 shares of RH and sold a 10 contract Call for $1.25 to bring in $1250. Today, with the stock moving up and down I placed an order to Buy to Close the option position for 60¢ or $600. With about an hour left till closing I had to leave my house for a basketball workout. I just got home and saw I was executed on my order. If I can get out of a position in 1 day being able to keep half the premium I brought in, I like to do so. In this case I brought in a total of $1250 and got out paying $600. In 1 day I made a profit of $650! The good thing is we still have 3 full days until the next expiration day and this is a very volatile stock. I’m hoping the stock goes up tomorrow and I can get another deal. Let’s see what tomorrow brings, but in the meantime I’m putting $650 in my mattress.
10/16/17 – Sell to Open 10 RH 10/20/17 $82.00 C @ $1.25 (+$1250)
10/17/17 – Buy to Close 10 RH 10/20/17 $82.00 C @ 60¢ (-$600)
Profit +$650
1 day! I like it! Some people work a week for $650.
Steve
The Options Coach
1 comment on Buy to Close RH Calls