SOLD MORE PUT ON THE HIGHER IV NETFLIX 360 @ 11$ 19/07

Jul 16, 2019

yesterday was expecting a higher vol on Netflix so placed an extra limit order at 11 (remember Friday was at 7,80)

When the stock reached 362 the trade triggered and went even to 11,80 each share !!!!! before coming back quickly to 369

As I said 360 is a great support for ST trading.

Lets see what the results will be today on Netflix but pre market is up , maybe those fearing bad reaction sold off already so i guess buyers will enter the stock today if want benefit the result earnings.

I have enough exposure on Netflix so will just let the position with 2 short at 9,80 $ average price or 1880 / 72000 = 2,6% trade in one week !!!!

Happy to get triggered so i can sell covered call on the stocks with high IV.

Jul 19, 2019

Trade closed: target reached

wow wow wow what a stress week for Netflix :-) can't be winning every trade

so what happen now

had two contract @ 360 now trade @ 320 with picks at 330 intraday

I will get monday 200 NETFLIX STOCKS delivered @ 360 each = 72000 $

got 9,80 $ each on 200 = 1960 $ premium

so for now my net loss on this trade is 8000 - 1960 = 6040$ or 8,3 %

my strategy is to exit the stock holdings Monday by selling calls in the money @ 5,0 $ or 1000 $ extra cash if triggered by end of week , so my loss will reduce to 5000 $ or 6,9% which i can accept as a rule of the game and risk mitigation factor.

I don't want to keep the stock because i want to free up the cash to make other deals by selling puts_

1/ my trade is closed if price goes up and in this case i can sell an other contract one week and make an extra 1000 $
2/ if price goes down within a week then i do the same and sell calls at the money until i get rid of the stoks.

my aim is to really get rid of this stoks and reduce the loss to 5000 $ which is ok because it does not happen too often

remq/ those who don't mind keep the stocks ans capital frozen for a while you can do this sell one month at the money calls at 11,50 or 2300 $ so after one month your loss is only 4000 $ if triggered if not do it again

HAPPY TO GET YOUR VIEWS AS I AM SURE MANY OF YOU GET THE SAME ISSUE AS ME AND LOOK FOR EXIT STRATEGIES ON NETFLIX