Stock / Symbol: Netflix / NFLX
Option Strategy: [private_monthly]bear call spread[/private_monthly];
Trade entry date / Price at trade post: Feb 6 @ $182;
Price at this post: $179.55
Current position:
short -2 NFLX Mar13 210 calls
long 2 NFLX Mar13 215 calls
at a net credit of $0.90 per contract.
Update / Reasoning: Would like to close out this trade for a 12% return ASAP. Current return is approximately 12% before commissions. Going to enter my closing order now but it will likely take until Monday (with NFLX trading under $179) to fill. The position's current greeks are: -6.2 delta, 4.0 theta, and -3.5 vega. If we get filled, a 12% gain off just a 2% drop in the stock (in under 3 weeks) is quite nice.
Trade Details:[private_monthly]
BTC -2 NFLX Mar13 210 calls
STC 2 NFLX Mar13 215 calls
for a max net debit of $0.35 per contract. (GTC order, limit order). The current mid is $.35. (I'm putting my order in at $0.34)
Max Risk: $820
Max Reward: $180 or 21% between $0 and $210 by Mar 15
Profit Range: 0 to $210 by Mar 15
Suggested Upside stop: @ $202
Suggested Downside stop: NA
Profit / Loss upon fill: $100 or 12% (after commissions)
[/private_monthly]
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