I just sold 1 Netflix Call. I sold 1 contract of the NFLX 4/26/19 $380 Call for a premium of $2.50 for $250.
Sell to Open 1 NFLX 4/26/19 $380.00 C @ $2.50 (+$250)
I bought 100 shares of NFLX way back on 10/11/17. I bought in at $194.75 per share. I’ve been holding the stock in my “Gift Account.” The stock is up big today, $14 as I write. When I sold the Call the stock was at $373.25. After looking at the candlestick chart, I noticed the stock levels off, or pulls back after a day like this. Since I was holding the stock so long, and I’m up a lot, I decided to sell an option. If I get assigned, which I hope I don’t, I’ll take my small premium, and the profit on the stock, and move on. I went with a $380 Strike Price so if I do get assigned I’ll make another $7 on the stock sale. That would be another $700 onto my stock profit. If I get assigned this coming Friday my profit on the stock would be $18,525. Up almost 100% what I paid for the stock on 10/11/17.
It sounds like a lot at stake for a very small premium of $250. But it might be time to move on from NFLX. I love the stock but I could use the money from the stock sale to trade with. Either way, if I get assigned or not, I’m cool with the outcome. 100 shares of NFLX at $380 is worth $$38,000. I could put it to good work. Let’s watch and see what NFLX does for the rest of the week.
Steve
The Options Coach