What a crazy week! According to CNBC this was the worst one week in 4 years. I’m a little worried about going into the weekend owning a lot of stock the way the market has been moving. Here’s what I did. On this Monday 1\/4\/16 I bought 3000 shares of NFLX at $109. I sold the $112 Calls. The stock flew up to $120 during the week and it looked like I was going to be assigned and have my stock taken at the $112 Strike Price. In the last 2 days NFLX came all the way back down to below $112. If the stock stayed above $112 I would lose the stock. If it went below the $112 I would keep the stock. As you might know I like to lose the stock because I’m not into owning stock. I make my money trading options. Well, with 10 minutes left to the trading week the stock went down to the 111.25 area. I decided to sell the stock because I would not be getting assigned and I didn’t want the stock over the weekend. I bought for $109 and I just sold for $111.25. That’s a $2.25 profit. on 3000 shares that’s a profit of $6750. I Love It! Here’s the order to sell the stock:<\/p>\n
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With the 3000 shares of stock I sold a Call Option on 1\/6\/16 and got a total premium of $3150. At the closing bell that option expired. That deal is OVER! I keep the entire premium of $3150.<\/p>\n
In summation I bought 3000 shares of NFLX for $109 and sold for $111.25 for a 5 day profit of $6750. I sold a Call for $3150 and it expired so I keep the premium for a 3 day profit of $3150. \u00a0I have other trades that expired today and I’ll include those results when I\u00a0write a week ending post.<\/p>\n
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“Money in the Mattress”<\/p>\n
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Pages to read to understand this trade:<\/strong><\/span><\/p>\n Covered Call<\/p>\n Selling Options<\/p>\n Rate of Return<\/p>\n \n \n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" What a crazy week! According to CNBC this was the worst one week in 4 years. I’m a little worried about going into the weekend owning a lot of stock the way the market has been moving. Here’s what I did. On this Monday 1\/4\/16 I bought 3000 shares of NFLX at $109. I sold […]<\/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-978","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-fM","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/978","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=978"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/978\/revisions"}],"predecessor-version":[{"id":979,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/978\/revisions\/979"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}