Last week I sold a $102 Call and at the close on Friday the stock was at $101.97. I did’t get assigned! This morning the stock went up above $105. With the stock jumping up as high as $105.94 and earnings coming out tomorrow, I decided to get out with a nice profit. With the stock jumping around, I wanted to get executed so I put in a sell order at $105.15. Since I was just executed a minute ago I didn’t get my email confirmation yet so I don’t know if I was sold at the $105.15 or possibly a little higher. I know it’s at least $105.15 so that’s what I’ll list it at.
11/20/17 – Buy 1000 Shares RH @ $101.00
12/4/17 – Sell 1000 Shares RH @ $105.15
Profit $4150
The crazy thing about this trade is the stock closed on Friday at $101.97 and I had a $102 Call. 3 or 4 more cents and I would have been assigned. 1 minute into the market today the stock jumped to over $105. Because of that 3¢ I was able to lock in a $4000 profit. Crazy! But I’m happy!
Who knows where the stock will go after the close tomorrow. The stock has been doing great at earnings. A few week ago with the company announcing their guidance the stock jumped $20. I decided, with my $4000 profit, I’ll sit this one out. I’m having a great year and I don’t want to get greedy and possibly the stock go down $20. Now I hope it does because it will be a nice buying opportunity.
Let’s watch and see what RH does tomorrow. Whatever it does I had a nice start to the week. In the mattress it goes!
Steve
The Options Coach