Hi Readers, I know it’s been a long time. Besides being very busy with the high school basketball season upon us, the stock market had a record breaking October. And not in a good way! The amount of records broken are many so I won’t get into all of them. But it’s the worse October in over 10 years. Let’s see what November brings.
I just made my 1st trade is about a month. I did a Buy-write with 100 shares of Netflix. I decided to get back in slow with a high priced Grasshopper trade. Let’s face it, Netflix is a high priced stock, even if it’s only 100 shares. I bought 100 shares of NFLX for $316.80 and sold a 1 contract $320 Call to expire tomorrow. I received a $3.41 premium for a total premium of $341. If I get assigned I’ll make another $300 on the stock. I think it’s a good trade to get back in the game with. It would be nice to make $600 is a day and a half!
Netflix Buy-write
Buy 100 Shares NFLX @ $316,80
Sell to Open 1 NFLX $320.00 11/2/18 C @ $3.41 (+$341.00)
This is a Covered Call on a very highly rayed stock so this trade gets a Risk Factor 1.
It’s good to be back!
Steve
The Options Coach
Some success with AMRN. I bought it right before FDA announcement, but Stoll able sell some pretty good calls. Let me know what you think.
Hi James,
I really don’t follow Amarin Corp (AMRN). Or do too much with biopharmaceutical companies. I see it’s been trading in the $3 area until late Sept where it made a huge jump in one day. Pharmaceutical companies will make moves like this if they get some type of approval from the FDA. At the present time the stock has premiums that fall into the area of my strategy. You can get a 1% or 2% return per week when selling Calls. But, like I said, I don’t know much about the company. If you continue to invest in this stock, look to see if they have any other products going in front of the FDA. An approval or disapproval will move the stock in a big way, up or down! Good luck!
Steve
You were missed. Glad you are back.