Hi traders, I made a few moves this morning with my NFLX and FSLR positions.
I closed the 30 FSLR Dec 95 puts for 237 - this made a nice profit of 725
I also closed 10 NFLX puts at the 180 strike for 32. for a nice profit of
406 in one day
I opened some longer running Jan 135 puts with NFLX. With NFLX trading around 195, I opened 30 of these and it gives me 60 points of cushion with 6 weeks to go. The maintenance for this trades is 42,900 and i took in 1380. So a return of 3.2%. If NFLX continues to either go higher or stay around the same area i anticipate that i will be rolling these up in a couple of weeks to 'boost' the return a little. This continues my general plan of opening a monthly position with a return of around 3%. If all goes as planned it usually lets me tweak it some to get a little better return by months end. As I plod along, 3% each month does not sound all that spatacular but it adds up to an annual return of around 42%..
3 comments:
Hi Greetings from Singapore! Hated the journey as usual -flying time 21 hours for about 11,000 miles. These days you may have to starve and be thirsty too in non-Asian airlines.
Rolled NFLX from 155 to 170 with a week to go.
$25 to drop....
Talk about LUCK!! the other blog I read he sold Dec2 NFLX 195.00 puts for 7.00
NFLX Mark 195.17 with 10 min. to go....WOW
Leeway, I stumbled across you via TradeKing and read through a rather lengthy forum thread where you explained your strategy. I was impressed, thanks for the great information. I am new to all this so I would like to ask you a question regarding the January 135 trade you made last week. Basically, I am curius to know how much weight you put into the stocks past performance and established support lines? I read in the TK post you don't pay much attention to the technical analysis, but a quick glance at NFLX, it would seem to me in the (albeit) unlikely event the stock came down to 135, that would seem to be an attractive price to enter long position. So, without bugging you too much, do you factor in the thought that if you are put to the stock, you could then reverse your trading and place covered calls?
Sorry if my question noobish, I am just starting to investigate options and am interested in hearing what people think.
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