{"id":1319,"date":"2016-03-10T10:23:00","date_gmt":"2016-03-10T15:23:00","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=1319"},"modified":"2016-03-10T10:23:00","modified_gmt":"2016-03-10T15:23:00","slug":"sell-another-nflx-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=1319","title":{"rendered":"Sell Another NFLX Call"},"content":{"rendered":"

\"Screen<\/a><\/p>\n

If you are following my blog you saw me buy 1000 Shares of Netflix (NFLX) earlier this week. I purchased the shares for $97.95. On Tuesday I sold a Call against these shares and received a premium of $1 for a total premium of $1000. A few hours later, with NFLX pulling back and the premium going down, I bought my way out of that option for $.50. The selling of a Call is a Short Position. You must understand how Short Positions work. You sell<\/span> before you buy<\/span>. In this deal I sold for $1 and bought for $.50. This gave me a $.50 profit. On 1000 shares (10 Contracts) it gave me a $500 profit. Please read my section named “Long & Short Positions<\/span><\/a>.”<\/p>\n

Since I bought my way out of that option I now own the 1000 shares with no option. This morning I sold another Call Option against my shares. A few minutes ago, with NFLX at $99.25, I sold another 10 contracts of the $100 Call expiring tomorrow. I received another $1 premium for $1000. Here’s the sell order:<\/p>\n

 <\/p>\n

Sell to Open 10 NFLX 3\/11\/16 $100 C @ $1 (+$1000)<\/strong><\/h4>\n

 <\/p>\n

I gave this trade a Risk Factor<\/strong> of 1 for two reasons. #1 is because it’s a Covered Call which is a pretty safe trade. #2, I don’t care if NFLX goes above my Strike Price of not. I just don’t want NFLX to go down big. If the stock stays in the area it’s in now, I keep my stock and keep the premium of $1000. If the stock goes above my Strike Price I lose my stock at $100 a share and keep the $1000 premium. I’ll make $2.05 on the stock sale ($2050) plus the $1000 premium. If the stock goes up big by tomorrow I’ll make the same $3050 but I’ll have an Opportunity Lose<\/a><\/span> which does not bother me at all. Read my section on Opportunity Lose.<\/a>\u00a0<\/span><\/p>\n

The best kind of trade is when you don’t care what happens!<\/p>\n

 <\/p>\n

Always read the “Message of the Day”<\/a><\/p>\n

 <\/p>\n

Read the following links:<\/p>\n

Long & Short Positions<\/a><\/span><\/p>\n

Opportunity Lose<\/a><\/span><\/p>\n

Covered Call<\/a><\/span><\/p>\n

 <\/p>\n

Any questions on this trade, please email me at Coachsjc@gmail.com<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

If you are following my blog you saw me buy 1000 Shares of Netflix (NFLX) earlier this week. I purchased the shares for $97.95. On Tuesday I sold a Call against these shares and received a premium of $1 for a total premium of $1000. A few hours later, with NFLX pulling back and the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-1319","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-lh","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1319"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1319\/revisions"}],"predecessor-version":[{"id":1320,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1319\/revisions\/1320"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}