RH reported earnings yesterday. The initial move in the stock was up about $15. After the Street read the report a little more the stock started moving down. The earnings were good but the Street didn’t like the guidance the company gave for the next year. Today the stock is down almost 10%. I’m very happy I stuck to my rule to not get involved in a stock with big news eminent. Something I don’t do all the time. About an hour after the market opened, and the stock settling down, I decided to get in with a small purchase of 100 shares. I bought the shares at $138.86. I’m hoping the stock recovers a bit and I can get a Call sold. I’m hoping to make $500 between a little stock gain and a premium. Right now the stock is a little lower than where I bought. Let’s see what happens.
Buy 100 Shares RH @ $138.86
Steve
The Options Coach