Stock / Symbol: Netflix / NFLX
Strategy: Vertical Call Spread
Trade entry date / price: 25 Feb 2021 / $547
Price at this post: $527
Update / Reasoning: This trade saw NFLX piercing down thru its 50 moving average and testing support at the $500 level. Now, however, with NFLX recovering nicely over the past few days, we're able to exit the trade here for a nice profit. Between the position entry and now, the Greeks have gone from: 1.5 to 0.9 Delta, 1.2 to 0.1 Theta, and -2.3 to -1.0 Vega.
Trade Exit Order:
STC 1 NFLX 19Mar21 495 call
BTC 1 NFLX 19Mar21 500 call
For a min net credit of $4.80 per contract (limit order / GTC order). The mid is currently at a credit of $4.90. I was filled earlier today at $4.80.
Analysis:
Max Risk: $430
Max Reward: $70 or 16% with NFLX at/over $500 on Mar 19th
Profit Range: NFLX at/over $499.40 at market close on Mar 19th
Commission (round trip): $2.60
Realized Profit / Loss: $50 or 11.6% (pre commission)
