Last Thursday I did a 1 contract Buy-Write with Netflix (NFLX). I bought the 100 shares of the stock at $316.80 and sold a $320 Call. I was not assigned on that 2 day Call. Today with NFLX down I entered an order to sell another 1 contract Call to expire this Friday. When I entered the order the premium was $3.50, but I entered a $5 strike Price. I had to leave my house about 2:30 to go to basketball practice. I figured I wouldn’t get filled because the stock was still down and the day was getting old. I just got home and noticed I was filled and NFLX closed up 0ver $6. The stock is now at $315.44 and I have a $320 strike. This is the 2nd Call I sold on these shares. It’s a Covered Call so it gets a Risk Factor 1.
11/5/18 – Sell to Open 1 NFLX 11/9/18 $320.00 C @ $5.00 (+$500)
NFLX is gonna move as soon as the market starts to move. Maybe after the vote tomorrow. I feel it’s gonna move because it received 2 upgrades today and one of the upgrades gave a price target of $500. Let’s watch this stock and see what it does before the end of the year. But first let’s see what it does at the end of the week.
Steve
The Options Coach