Then analyzing the options chain and the chart patterns of RH prior to the earnings report this week, I would consider purchasing the 320usd strike price Puts with an expiration date of 2023-9-15, for a premium of approximately $0.98. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Trade closed: target reached
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RH probably the trading idea of the month!
RH traded at $309.00 after earnings, and the Puts went up from $0.98 (when I wrote this article) to $12.50 at the close on the earnings day (a lot higher intraday, when the stock was trading at $309), for fantastic 12.75X gain!
Thanks bud. I for once disagree and I expect RH to beat expectations since CEO Gary Friedman's guidance already lowered revenues & P/s. but who knows. I bought calls exp Sep. 15.
TopgOptions
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@neatfreak301, sorry, man. hope it was a small position.