With RH at $94.35 I just did a 5 Contract “Buy-Write.” I bought 500 shares of RH at $94.35 and sold a 5 Contract Call. I sold 5 contracts of the RH 1/19/18 $94.50 Calls for a premium of $1.55 for $775. This is a 1 day Call, it expires tomorrow. I did this move for the premium. On this position, I hope the stock goes up and I get assigned. I say on this position because I have other Call positions I sold yesterday on RH, which I hope to keep that stock. On the Calls I sold yesterday I went out a little on the Strike Price with the hope of keeping that 2000 shares. This “Buy -Write” executed today is for the $1.55 premium and the 15¢ on the stock sale if assigned. This “Buy-Write” Covered Call is a 1 day position on a very strong stock so this trade gets a Risk Factor 1.
RH “Buy-Write”
Buy 500 Shares RH @ $94.35
Sell to Open 5 RH 1/19/18 $94.50 C @ $1.55 (+$775)
As I write the stock is at $94.60.
Steve
The Options Coach