Good morning! It’s 10:20am Monday morning and I already made 6 trades. This post I’ll talk about 2 of them then I’ll write another post for the other 4 trades.<\/p>\n
As I’m writing I just got executed on another trade. This is live trading!<\/strong>\u00a0You’re getting them as I make them!<\/p>\n The first 2 trades involve Netflix (NFLX). The next 4 involve U.S. Steel and the last trade which got executed a minute ago involves GoPro.<\/p>\n The market opened down a little and all the FANG stocks (FB, AMZN,NFLX & GOOG) were down. With NFLX down $1 I felt it was a good time to sell a Naked Call. I felt it was going to go down more. The stock opened at $105.90 and with the stock at $104.90 I sold 10 contracts of the 4\/8\/16 $106 Naked Call. I received a premium of $1.50 for a total of $1500. Here’s the sell order:<\/p>\n <\/p>\n With the stock at $104.90 and selling a Call with the Strike Price of $106, I would not feel comfortable leaving this a Naked Call. NFLX is way too volatile to keep this a Naked Call and when I sold the Call I didn’t plan on keeping it Naked. As a stand alone position I would give this trade a Risk Factor of 5. However I didn’t plan on keeping it Naked. The stock was moving south and I was waiting to get a better price for 1000 shares of NFLX before I covered my position. The stock moved down to below $104 but I didn’t pull the trigger on my buy order because it looked like it might tumble much lower. The way it worked out, the stock reversed and started moving up. I ended up buying the stock to cover my Call at $104.71. Where it’s going, I don’t know, but I feel better now that I’m covered on my 10 contracts of my Calls. Now that I have a Covered Call I give this position a Risk Factor<\/strong> of 1. Here’s the order to buy the stock:<\/p>\n <\/p>\n Check out my next email. It involves one of my strategies I developed. You will not read it in any book because it’s my strategy and I didn’t write a book……yet lol.<\/p>\nSell to Open 10 NFLX 4\/8\/16 $106 C @ $1.50 (+$1500)<\/strong><\/h4>\n
Buy 1000 shares NFLX @ $104.71<\/strong><\/h4>\n