{"id":1404,"date":"2016-03-30T10:52:55","date_gmt":"2016-03-30T14:52:55","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=1404"},"modified":"2016-03-30T10:52:55","modified_gmt":"2016-03-30T14:52:55","slug":"more-nflx-naked-calls","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=1404","title":{"rendered":"More NFLX Naked Calls"},"content":{"rendered":"

\"Screen<\/a>With NFLX at $103.90 I sold 5 more contracts of NFLX Calls. These are Naked Calls. At least I’m treating them as Naked Calls. I say this because I still own NFLX stock that I bought in January but I’m not using them to cover these new Calls. I do not want to loose these shares with assignment because I’m waiting for them to get up to my purchase price of $115. I’m holding them on the sidelines! So I do have the shares to cover these 5 contracts I sold today but I’ll treat these contracts like Naked Calls, meaning if NFLX goes above the $104 Strike Price I will cover these Calls by buying the 500 shares. Since I’m treating this trade as a Naked Call, I’m giving it a Risk Factor<\/strong> of 5. I give this trade a 5 because it’s a Naked Call and it’s only $.10 away from the Strike Price of $104. Basically it’s an At-the-Money Call. A Naked Call, At-the-Money is a very high risk trade and I do not recommend this type of trade anyone, let alone a beginner. There is 3 days to expiration so I’ll have to be glued to my screen. Because of the Risk Factor of 5 I only did 5 contracts where I normally do 10 contracts. Also because of the At-the-Money Call I got a very nice premium, $1.45. Here’s the sell order:<\/p>\n

Sell to Open 5 NFLX 4\/1\/16 $104 C @ $1.45 (+$725)\u00a0<\/strong><\/h4>\n

 <\/p>\n

Why did I make this trade you ask? Well the market has been moving great lately and it’s up again today. Also the FANG stocks (Facebook, Amazon,Netflix & Google) have been on a run and I do not think it’s going to continue. I don’t like to trade like this but I feel very strongly that NFLX is going to pull back a little.<\/p>\n

As I write this post I keep going back to my trading screen to watch NFLX closely. I sold these 5 contracts with NFLX at $103.90 and it’s already down to $102.75 as I write. Since NFLX is so volatile I hope it drops below $102 to give me a little breathing room. If it does I might even jump out of these contracts with a profit as the premium goes down.<\/p>\n

 <\/p>\n

Please email any questions on this trade. You must understand what I doing to be an options trader.<\/p>\n

Coachsjc@gmail.com<\/p>\n

 <\/p>\n

 <\/p>\n

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

At-the-Money<\/a><\/p>\n

Naked Call Options<\/a><\/p>\n

Assignment<\/a><\/p>\n

 <\/p>\n

Steve<\/p>\n

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

With NFLX at $103.90 I sold 5 more contracts of NFLX Calls. These are Naked Calls. At least I’m treating them as Naked Calls. I say this because I still own NFLX stock that I bought in January but I’m not using them to cover these new Calls. I do not want to loose these […]<\/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-1404","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-mE","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1404","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=1404"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1404\/revisions"}],"predecessor-version":[{"id":1405,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1404\/revisions\/1405"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}