This was another 1 trade week, but it was a good one!
Back on May 6th I bought 300 shares of RH (RH) at $105. I only owned the stock for a day or 2 and the stock pulled back into the middle 90’s. I think this pull back was caused by the fact that RH was getting ready to report earnings. The company has been getting hurt with the US/China trade war and there was anticipation that earnings would not be good. Well, they reported and the report was great! And the stock jumped $18 in one day. This moved the stock above where I bought and I was able to get a Call sold. With the stock in the $110 area I sold 3 contracts of the 6/21/19 $113 Calls fo a premium of $2. This gave me a $600 increase in my account. This stock in very volatile and it went as high as $118. At this point I knew I’d get assigned and have a pretty large “Opportunity Lost.” Before expiration day (this Friday) the stock backed off and closed at $114.76. There was still an “Opportunity Lost” but not bad! I was assigned and this deal is closed. I bought the stock at $105 and was assigned at $113 for an $8 gain on 300 shares. The sale of the stock gave me a gain of $2400.
5/6/19 – Buy 300 Shares of RH @ $105.00
6/21/19 – Assigned 300 Shares RH @ $113
Profit +$2400
I also keep the premium of $600. Overall this was a great Covered Call trade!
6/14/19 – Sell to Open 3 RH 6/21/19 $113.00 C @ $2.00 (+$600)
6/21/19 – Expired 3 RH 6/21/19 $113.00 C
Profit $600
This ended up being a great week with only 1 trade. It gave me a gain of $3000.
With the market moving well I don’t have a huge desire to sell options. Many times I’d rather just keep the stock and let it grow. I’ll be writing a post soon on what I do when the market’s moving well and I don’t want to sell Covered Calls. Stay tuned!
Total Weekly Gain +$3000
Steve
The Options Coach