{"id":5272,"date":"2019-07-16T13:06:00","date_gmt":"2019-07-16T17:06:00","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5272"},"modified":"2019-08-03T12:22:00","modified_gmt":"2019-08-03T16:22:00","slug":"out-of-micron-naked-calls-back-in-netflix-leaps","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5272","title":{"rendered":"Out of Micron Naked Calls\/Back in Netflix LEAPS"},"content":{"rendered":"

This morning I got out of my Micron (MU) Naked Calls and I bought more Netflix (NFLX) LEAPS.<\/p>\n

Micron has been on a crazy run for a few weeks. Yesterday it looked like it was hitting resistance at $45. And to me it looked like there would be some profit taking. With the stock at $44.45, and having a strong feeling the stock would back off, I decided to sell a Naked Call. It\u2019s a dangerous move on a hot stock but I felt good about my prediction. I sold 10 Naked Calls for 47\u00a2 for $470. These Calls were to expire this Friday.<\/p>\n

Today, as expected, the stock opened down. I saw an opportunity to get out with a 1 day profit so I placed a \u201cBuy to Close\u201d at 17\u00a2. A little while later I was filled, and this deal is over! Grasshoppers<\/a><\/span>, you must understand Short Positions<\/a><\/span>. I sold for $470 and I bought my way out for $170 for a profit of $300. I love taking profit! These are the type of deals you find when you get knowledgable with options and put in the time.<\/p>\n

7\/15\/19 \u2013 Sell to Open 10 MU 7\/19\/19 $45.00 C @ $47\u00a2 (+$470)<\/strong><\/p>\n

7\/16\/19 \u2013 Buy to Close 10 MU 7\/19\/19 $45.00 C @ 17\u00a2 (-$170)<\/strong><\/p>\n

Profit +$300<\/strong><\/span><\/h4>\n

When I\u2019m involved in Naked options I like to get out if there is a good opportunity. If I sell a 1 week Naked Call and have the opportunity to get out with half my premium in 1 day, I do. Naked Calls are dangerous! You never know what will happen in the next few days. Here I signed up for a $470 premium and I was able to get out in 1 day with a $300 profit. I\u2019ll take that and stick it in my mattress! Any time! This deal is closed!<\/p>\n

\n

\"\"<\/a>On 6\/27 I bought 3 NFLX LEAPS. On 7\/11 I noticed a reversal pattern on the candlestick chart. You normally get into LEAPS to own for a while. Me being a \u201cSwing Trader,\u201d and seeing this reversal pattern, I decided to temporarily jump out which gave me a $1200 profit. Read my post reporting my exit at Out of My Netflix LEAPS<\/a><\/span>. You will see the reversal pattern.<\/p>\n

When I exited that position on 7\/11 the stock immediately headed south. The next day it was down $6. And it\u2019s been going down since. This morning the stock was up a little and I felt the pull back was over. With the stock at $368.10 I bought 5 of the same LEAPS I sold on the 11th. Originally I bought 3 of these Calls for $44.50 and sold them at $48.50 making $1200. Today I bought 5 of the same Calls for $42.60. As I write the stock is up about $1.50. Who knows how long I\u2019ll be in these? I plan on staying a while but things change. If I see another nice profit in a short amount of time I might exit again.<\/p>\n

Buy 5 NFLX 6\/19\/20 $400.00 C @ $42.60 ($21,300)<\/strong><\/h4>\n

This is a long term option but buying options never feels completely safe. Here I feel confidant this position will turn out well. I give this trade a Risk Factor 2<\/strong>.<\/p>\n

This option has a Delta of .50. My premium will move 50\u00a2 for every $1 move in the stock. So my investment will go up as if I had 250 shares of NFLX. I invested $21.300. If I bought 250 shares of NFLX it would have cost my $92,025. I love leveraging my money with options!<\/p>\n

Any question? Send an email.<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This morning I got out of my Micron (MU) Naked Calls and I bought more Netflix (NFLX) LEAPS. Micron has been on a crazy run for a few weeks. Yesterday it looked like it was hitting resistance at $45. And to me it looked like there would be some profit taking. With the stock at […]<\/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-5272","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\/p75MP0-1n2","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5272","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=5272"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5272\/revisions"}],"predecessor-version":[{"id":5437,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5272\/revisions\/5437"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}