Earlier today I sold 2 contracts of the Netflix (NFLX) 4/27/18 $345 Calls. This morning NFLX shot up to $335 and I was able to sell a $345 Call for a premium of $3.10. On the 2 contracts I brought in $620. A few minutes ago, with NFLX pulling back to $328 I did a “Buy to Close” for a $1.50 premium. Whenever I can get out of a position with half of the premium I signed up for I like to do so. Especially if it’s the same day as I entered the position, and there’s still a week to get back in if the stock bounces back up. I sold this Call for $620 and I bought my way out for $300, profiting $320. For Grasshoppers new to options, you must know how Short position work. When you sell an option, this is a short position.
Sell to Open 2 NFLX 4/27/18 $345.00 C @ $3.10 (+$620)
Buy to Close 2 NFLX 4/27/18 $345.00 C @ $1.50 (-$300)
Profit +$320
This turned out to be a great trade which I was only in fora few hours. This $320 is in my mattress!
If you have any question about this trade send me an email.
Steve
The Options Coach