{"id":4188,"date":"2018-04-20T10:31:14","date_gmt":"2018-04-20T14:31:14","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4188"},"modified":"2018-04-20T15:16:06","modified_gmt":"2018-04-20T19:16:06","slug":"netflix-covered-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4188","title":{"rendered":"Netflix Covered Call"},"content":{"rendered":"

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

Earlier in the week I wrote about doing some Grasshopper<\/span><\/a> trades to show beginning traders that you can make money even if you don’t have much money to start with. A Grasshopper trades is trading with smaller amounts of stock. When I do a Grasshopper trade it will be dealing with 100 shares of stock and not 500 or 1000 shares. The big thing I’ll be looking for is the Rate of Return<\/span><\/a>. I’l be looking for a 1% return for a 1 week trade. I have a page you can read. It’s called “1Week\/1%.<\/span><\/a>” If you invest $100,000 and make 1% or if you invest $10,000 and make 1%, it’s the same thing. Yes the person investing the $100,000 will make more money but if you don’t have $100,000 you can only invest what you have. You will still be getting the same Rate of Return. If you make 1% a week, well, do the math!<\/p>\n

Earlier in the week I bought 1 shares of Netflix (NFLX) at $313.10 with the intention of selling a one contract Call. I bought the shares going into earnings. I felt the earnings were going to be good so I held off on selling the Call until the stock went up a little. The earnings were good and the stock went up $20. With all good news coming out about NFLX I decided to buy another 100 shares at $333.85. Today with the stock at $335 I just sold a 2 contract Call with the strike Price of $345. This Call will expire next Friday and I received a premium of $3.10 for $620 on the 2 contracts. This premium is a little under the 1% I desire. I decided to go with a higher Strike Price because it’s a hot stock. I could have went with a lower Strike Price and got a premium over the 1% but I wanted to have the potential of making more on the stock if assigned. This trade is a Covered Call on previously owned stock so it gets a Risk Factor 1<\/strong>.<\/p>\n

Sell to Open 2 NFLX 4\/27\/18 $345.00 C @ $3.10 (+$620)<\/h4>\n

 <\/p>\n

I understand if I sold a 1 contract Call on NFLX it’s not a legit Grasshopper trade. Today 100 shares of NFLX will cost $33,500. This is a lot of money! I’ll be doing more 1 contracts trades that will be much less money.<\/p>\n

 <\/p>\n

If you have any questions on this trade or any other trade send me an email.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

Earlier in the week I wrote about doing some Grasshopper trades to show beginning traders that you can make money even if you don’t have much money to start with. A Grasshopper trades is trading with smaller amounts of stock. When I do a Grasshopper trade it will be dealing with 100 shares of stock […]<\/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-4188","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\/p75MP0-15y","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4188","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=4188"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4188\/revisions"}],"predecessor-version":[{"id":4194,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4188\/revisions\/4194"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}