Common Cents sold its November 20 $90 call option on Thursday, September 3, as the share price of RH neared $95. Common Cents achieved a 27% return on its investment versus a 3.8% increase in RH's share price.
Since the sale, RH's share price has reduced to $91 - $92. I am considering making a similar trade before the earnings release on September 10; however, chatter about a fed interest rate hike in mid September may create some short-term headwinds for the market as a whole. This factor is important to consider when deciding on adding the risk of options.
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