As you might know, today kicks off earnings season. You can read my “ Message of the Day.” I own 1000 shares of NFLX which I bought April 4th for $104.71. I just had a Call expire this past Friday so I have the 1000 shares ready for another Covered Call. As I was writing the last post on the Calls I sold on U.S. Steel, I was executed on an order I placed for Calls on NFLX. NFLX reports earnings next Monday, April 18th and I would like to be out of this position for the report. To try to better my chances of getting assigned I picked a lower Strike Price than last week. I got in the stock at $104.71 and I just sold 10 contracts of the 4/15/16 $105 Calls. Selling the lower Strike Price I also received a great premium. I received $1.70 for a total of $1700. This is a 1 week return of over 1.6%. Please read my pages Rate of Return and 1 week/1%.
This is a Covered Call so I give this trade a Rick Factor of 1. Here’s the sell order:
Sell to Open 10 NFLX 4/15/16 $105 C @ $1.70 (+$1700)
Any question on this trade or my desired Rate of Return send me an email.
Steve
The Options Coach