Rocket Equities & Options Report - New Trade NFLX 01-19-21
New Trade - NFLX Call Credit Spread $525-$530
Selling a credit spread about $20 above the market in NFLX from $525 - $530 that expires Friday for a $1.25 credit and $3.75 risked. NFLX has earnings tonight and is trading at $503.50.
Sell Jan 22nd NFLX $525 Call
Buy Jan 22nd NFLX $530 Call
Collect a credit of $1.25. Our risk is that NFLX trades above $530 on their earnings this week. We achieve a max profit if NFLX stays below $525 this week.
Options are pricing in a $30 move on earnings tonight, and the implied volatility of the weekly options is about a $33.76 move. We are risking about $3 for ever $1 in potential profit - and we lose if NFLX moves higher by only about $26 right now.
I will have more updates out each day this week discussing our equity trades as well as companies with earnings as the season picks up.
Sell Jan 22nd NFLX $525 Call
Buy Jan 22nd NFLX $530 Call
Collect a credit of $1.25. Our risk is that NFLX trades above $530 on their earnings this week. We achieve a max profit if NFLX stays below $525 this week.
Options are pricing in a $30 move on earnings tonight, and the implied volatility of the weekly options is about a $33.76 move. We are risking about $3 for ever $1 in potential profit - and we lose if NFLX moves higher by only about $26 right now.
I will have more updates out each day this week discussing our equity trades as well as companies with earnings as the season picks up.
Options Trades:
NFLX $525 - $530 credit call spread for $1.25 collected ($3.75 risked). Expires Friday Jan 22nd.
Trades that expired Friday
$384-$385 SPY Jan 15th Call Credit Spread for $0.27 credit, expired worthless for a $0.27 or 36.99% profit.
$40 - $39 DAL Jan 15th Put credit spread for $0.25 credit, closed it at $0.10 or better Friday for a $0.15 or 20.00% profit.
Short Term portfolio:
None active
Long Term portfolio:
We are now effectively long CRM at $215.35. You can buy CRM here if you have not yet. CRM is trading at $216.60. Our stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $172.18. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $56.01. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $208.70. Stop is $189.50.
NFLX $525 - $530 credit call spread for $1.25 collected ($3.75 risked). Expires Friday Jan 22nd.
Trades that expired Friday
$384-$385 SPY Jan 15th Call Credit Spread for $0.27 credit, expired worthless for a $0.27 or 36.99% profit.
$40 - $39 DAL Jan 15th Put credit spread for $0.25 credit, closed it at $0.10 or better Friday for a $0.15 or 20.00% profit.
Short Term portfolio:
None active
Long Term portfolio:
We are now effectively long CRM at $215.35. You can buy CRM here if you have not yet. CRM is trading at $216.60. Our stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $172.18. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $56.01. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $208.70. Stop is $189.50.
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