I just sold a 2 contract Call against my 200 shares of NFLX. They are announcing earnings after the bell and I wanted to lock in some money in the case the earnings aren’t good. I believe the earnings will be good because NFLX raised the price of the subscription recently which will up their numbers. But they are going to need more members to beat the Street’s estimate. When I sold the Call the stock was at $401.50. Since I feel the earnings will be good I went out to the $425 Strike Price. I will get all stock profit up to $425. If there’s a beat it will be a nice week for me. This trade gets a Risk Factor 3. It is a Covered Call on a very good stock but with this big new due out it make its little dangerous.
Sell to Open 2 NFLX 7/20/18 $425.00 C @ $1.50 (+$1500)
Earnings coming any minute! Wish me luck!
Steve
The Options Coach