Good morning Campers! Today was a wild pre-market. China is really messing with out markets. Their market has been shut down for the second time this week. There are circuit breaker safeties in place to stop massive exiting of investors. Well that cannot stop me from trying to make a little more cash before the Expiration tomorrow. I just made 2 moves that might be the last 2 until Monday. Netflix is on a crazy tear right now so I decided to take a little of the money for myself. I am already in positions with Netflix (NFLX) that expire tomorrow. I own 3000 shares of the stock and I have Call Options sold on them. Five minutes ago I bought another 500 shares and sold 5 contracts of the 1/8/16 $120 Calls. I got the stock for $119 and I sold the Calls for $2. On the 500 shares the premium is a total of $1000. This is a very low risk trade so I put a Risk Factor of 1. Here is the order for the stock:
Buy 500 shares NFLX @ $119
After I purchased the stock I sold the Call which is a Covered Call. Here is the order:
Sell to Open 5 NFLX 1/8/16 $120 C @ $2
The way it looks, if NFLX keeps moving up I will get assigned at $120. If that happens I’ll make $1 on the stock which would be $500 on the 500 shares and the premium for selling the Call is $1000, 5 contracts (500 shares) at $2 per share. This 2 day deal will bring me in a total of $1500. Not bad! Keep an eye on NFLX and watch how it works out. I will be posting about this trade tomorrow.
If you have any question as you’re learning you can shoot me an email Coachsjc@gmail.com
Pages to read for this trade
Covered Call
Selling Call Options
Opportunity Lost
For the few friends on this email list you can go to the blog, I just put it live on-line. This is an exciting day! Are you ready to make money. If not you can watch me get rich!!
The address is www.mainstbeatswallst.com
I’m still working on a few things but send me an email and let me know what you think so far.
The Options Coach