Stock / Symbol: Netflix / NFLX
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $99.27;
Reasoning: Following NFLX's recent earnings announcement, I'm putting on a trade that assumes NFLX won't fluctuate in price as much as it would normally. I'm using a [private_monthly]iron condor with November's expiring options.[/private_monthly]. The trade's greeks are: -0.9 delta, 2.5 theta, and -3.5 vega.
Trade Details:[private_monthly]
STO -2 NFLX Nov15 114 calls
BTO 2 NFLX Nov15 116 calls
STO -2 NFLX Nov15 84 puts
BTO 2 NFLX Nov15 82 puts
for a min net credit of $0.45 per contract. (GTC order, limit order). The current mid is $.48.
Requirements:
Cost/Proceeds ($90)
Option Requirement $400
Total Requirements $310
Estimated Commission $12
[/private_monthly]
Max Risk: $310
Max Reward: $90 or 29% [private_monthly]between $84 and $114[/private_monthly] by Nov 20th[private_monthly]
Profit Range: [private_monthly]between $84 and $114[/private_monthly] by Nov 20th[private_monthly]
Suggested Upside stop: 110
Suggested Downside stop: 87.50
[/private_monthly]
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