RH/JMD – We have played them on and off over the years and I find them to be a good, solid company.  They are still fairly small, with just  83 stores and Whole Foods has 500 so I'd have to say there's a bit of room to grow as that's essentially the customer base (people willing to pay more for quality).  I like their attention to the bottom line while growing and $90.50 is only $1.85Bn so, if they are really going to make $200M next year – that's quite a good deal.

Last Q they made $3/share but that's XMas so more like $8.50 for the year and that's still great and, more importantly, they have beat each of the last 4 Qs, though estimates are getting higher and it's hard to keep up and, in fact, $8.50 is a guide-down from $10 expected before the last earnings, when the company dropped guidance as they saw the economy slowing this year (which was an accurate, good call).  

So, as much as I like them, recognize they WERE at $50 in the summer of 2017 and $25 the year before, though those were turnaround years (the kind we DO like to invest in) – it does indicate this stock could sell off a lot harder than it has so far so I'd go in looking for more at $75 and more at $50, where I'd put my foot down ($25 no longer realistic) so, in the LTP, since $90.50 is still a lot per share, even if I were willing to make it a $100,000 position, that's only 1,000 shares so I only want to risk being assigned 500 in stage one as I can end up stretched closer to $200,000 if we have to DD twice. 

So, initially, for the LTP, I would just sell 5 of the RH 2021 $80 puts for $20 ($10,000) as that's net $60 if assigned and, since we know it's a small initial entry, there's no reason not to poke at a bull call spread like 10 2021 $80 ($31)/130 ($16) bull call spreads at $15 ($15,000) so that's net $5,000 on the $50,000 spread so you can't be unhappy if your "small" position makes you $45,000 (900%) and gets called away while a net $90 entry on 500 ($45,000) won't kill us – especially if we could sell more $80 calls for $30 and more $80 puts for $20 then we'd be in 500 at net $40 with the risk of owning 500 more at $80 to average $60 on 1,000 ($60,000), which is 33% below the current price so, if you want to own $60,000 worth of RH at $60 – then this spread is a no-brainer as it pays $45,000 if you don't get that great entry.  

Keep in mind it's an aggressive spread with an aggressive target where we would LOVE to see RH go lower so we can take up a proper position at net $60 but, just in case it doesn't get cheaper – our backup plan is to make $45,000 and walk away (which is what usually happens to us when we play RH on a dip).

Debt/Pstas – Yes people forget HOW we grew the market, lots and lots of buybacks financed by debt and, one day, the piper will need to be paid.  

You're welcome Sun.

CMG/Winston – We may not believe in TA but we KNOW others believe in TA so that's still a factor.  $650 was my target for CMG and still is but more like $600-$675 so it just needs time to settle into a new range, which is very fair for a company that made $9 last year and maybe $13 this year and MAYBE $17 next year, which is still 35 times less than just $600 – but I'm giving them that since the growth is robust but 40x ($680) forward earnings is pushing it and 45x ($765) would be ridiculous – so here we are.