Then you should know that looking at the RH options chain ahead of earnings , I would buy the $245 strike price Calls with 2023-4-21 expiration date for about $15.10 premium. If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
Trade closed: target reached
⋅
RH reached $249.93 intraday, after earnings. That was the top.
Congrat! Happy for you. I am still struggling with those put I sold few months ago and got assigned at the highest strike price. I am crushed. And i am still holding those damn 5 put contracts exp end April. Please, can you tell or view that it is the end of the downtrend and maybe reversal for the next few days? Grateful for any answer. Thx!
TopgOptions
⋅
@wardaK, I checked the options chain of RH for you on tastytrade and there were a lot more puts than calls on friday. might go lower by April 21. the idea is to sell early, as soon as you are in profit. or if the price goes against your position after the ER, then catch a small reversal like what happened on friday, and exit for a break even. this is my strategy.
wardaK
⋅
@TopgOptions, Thank you my friend! I unfortunately sold the puts months ago and strike price was so high. I am gonna have to be very strategic and buy back at huge loss but keep my long put hoping it set off the losses. Thanks a lot for your support
wardaK
⋅
Excellent idea! Do you see RH ready to reverse from this downtrend and go up to 300 level? I. am curious to know about this one.. Thanks!
TopgOptions
⋅
@wardaK, yes, i believe it can reach $280 this year.