The Stock Market is My ATM
I just sold KB Homes (KBH) and made +118% return on investment (ROI) in 18 business days but the stock only increased by 7.53%. How was that possible? OPTIONS!
On 15 Nov 2017 I bought the KBH 15 Dec 29 calls for $.86 which was a cost of $86 for one contract. So this was mean speculating that KBH would reach a stock price of $29 by 15 Dec 2017 while it closed at $28.65 the day of purchase. Well she went much higher than my strike price of $29 as I am writing you now currently trading at $31.11.
I sold the contract this morning through my E Trade app prior to boarding my flight for $1.88 giving me the difference between $1.88 and $.86 which is $1.02, times 100 shares, equaling $102.
What am I going to do with the profits from this trade? Buy a contract of something else...what will I buy? Well that's Emerald Chaser privilege...
