Long $RH Idea

RH's (RH) stronger-than-expected fiscal Q1 results featuring "beats across the board and demand at record levels" signal more gains in 2021 and beyond "on a slew of initiatives to drive growth," BofA Securities said in a research note.

• Following a strong earnings, RH has consolidated for a few months accumulating institutional buying.
  
  
• If RH closes above 723 on the weekly timeframe, this will confirm a breakout.
  
  
• With lumber and housing market coming back to more normal levels; new housing projects lead to furbishing with upscale furniture which RH provides.
  
  This trade is for traders looking to take a bullish position. December 800c are a go after confirmation.
  
  Best of Luck!
  

Daniel Betancourt
OptionsSwing Analyst