Hi Traders. Yesterday I opened the naked calls with NFLX trading around 167. I sold the naked calls for .73 net or $737.
Today i closed the position for two main reasons.
1. NFLX is heading up over 5 pts so far. This isn't a real problem as
I had a buy order in for the stock if it crossed 184.
2. I am leaving town for 10 days tomorrow and will be out of all contact.
No TV, cell or any other means of finding out what is going on in the
financial world. I could just leave and let the position do what ever it wants, but it is just something that i do not want on my mind while I am gone. If NFLX had gone down some this morning I would probably have left it open as it would have seemed even more safe. It now is possible for NFLX to 'maybe' make it to 185 or above. Not likely butttt....
3. I closed the position for $592 so i made some money in one day -145 when the dust settled.
The interesting part is how even though NFLX went up over 5 dollars the naked call went down. That is a classic example of premium being eaten up by the TIME factor.
As you can see by my trading style, if something goes different than I expected I do not hesitate to pull the trigger. To me that is an important part of trading. You can not be the deer in the headlights and just stare at the monitor wondering ..What's gonna happen next. You have to be decisive. You will be wrong often but hopefully you make profits and sleep better. As I've said in the past, I had those months where I tossed and turned all night. Those days are in the past for me. I will open a position for a specific reason and if it does not work out as anticipated... I close it and move on.
Good trading all.
3 comments:
Hope you have a good time out of town. Yea, lucky you :)still earned some.....
Should have stayed in $150 put though. I am in 190 call following your lead. Hope it is OK.
What do you do when you have partial fill? If the price goes below selling price and up again, usually it goes higher. Just wonder it's best to cancel the rest of the order? Or sell it lower? Or let it open for the rest of the day?
Don't mean to bother you but in case you are happy to reply some e-mails...lol & thanks.
Hannah
Hi Hannah
1. I think you are very safe with the 190 nflx call. Two days left and still around 19 points to go. If i were staying in town this week i would have left mind with the 185's. I just didn't like the 'not knowing' part.
2. Getting a partial fill is not all that common. If I still like the position i let it run. If it looks shaky, I recommend to close. That sound simple but it is that simple. Good luck.
i sold the 185 at .60 and bought it back at .15 on this trade for a .45 profit in just a few hours..first time i did a naked call and it worked great.
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