What a wild & crazy day! The Dow was down as much as 400 points. The market came back a bit but it still ended down. The Dow -276, Nasdaq -104 and the S&P -31. As you read the blog you will see I’m not into owning stock. If I do, 2 stocks I really like are Facebook (FB) and Netflix (NFLX). Today, very close to 4pm I bought 3000 shares of NFLX. The stock took a big dip today so I bought at a price I felt was a good deal. I got in at $109 per share. I did not buy to just own the stock, I bought to sell calls and hopefully gain a few points in addition to getting a premium. Because I got in to the stock so late, I didn’t get to sell the Calls yet. I will be watching very closely tomorrow at the open to see how the stock moves. If it’s on the move I’ll hold off on the call while it’s moving up. If it looks like it’s going to move sideways for a while I’ll get the Call sold to bring in some premium. NLFX is a great stock but I’ll give this trade a Risk Factor of 2 because I bought so much and if the stock continues to dip tomorrow it will affect my account a lot. I don’t like owning stock and when I do I worry until I’m out. Let’s see how this works out. Watch for tomorrow’s post to see if I get the Call sold. Here is a the order:
Buy 3000 shares NFLX @ $109
The Options Coach