Are you watching Netflix (NFLX)? This stock is moving crazy, even on a down day. How long can it run? Who knows?
As most of you know I’m holding 300 shares of NFLX in my trading account. 100 is for my “Gift Account” but I’m holding them in my “Trading Account.” The reason is, I bought them in my Trading Account, as all the stock in my Gift Account, but I didn’t transfer them yet because they’re worth too much money. In my Trading Account I trade on margin, and if I transfer them now it will upset my margin. The other 200 shares are meant for trading but I haven’t been selling Calls against them because they keep going higher. Today with the stock up another $14 I decided to sell a Call on my 200 shares I trade with. With the stock at $404.50 I sold 2 $415 Call for a $3 premium. This brought me in $600 and the Call will expire this Friday. I went out to the $415 Strike Price because I really don’t want to get assigned. I bought 100 of these shares at $313.10 and the other 100 at $333.85. If the stock continues to move crazy and I get assigned I will make a nice profit on the stock sale in addition to the premium.
Sell to Open 2 NFLX 6/22/18 $415.00 C @ $3.00 (+$600)
This is a Covered Call so the trade gets a Risk Factor 1.
Still watching RH closely to see what I want to do.
Steve
The Options Coach
Hello Steve. Thanks for posting the Opportunity Lost on RH. I appreciate your point of view – not to be greedy.
On the NFLX trade you meant to indicate a strike price of $415 and not $115.
Thank you Devan. I’ll make the change on the site. NFLX up another $8 today. Crazy!
Thank you for reading.