When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Netflix, Inc. (NFLX) – BUY
Buy Netflix, Inc. (NFLX) December 2024 $820-$825 in-the-money vertical BULL CALL spread at $4.10
Opening Trade
11-26-2024
expiration date: December 20, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Traders are bidding up software stock going into year-end, and streaming stock NFLX dipped 3% yesterday, giving us a chance to jump in for a short-term trade.
This is a tactical trade here, and I believe NFLX has won out long-term in the streaming wars as legacy media fades away.
The markets are very fluid as we approach December. Just keep in mind that towards the end of next month, we start to get tax loss selling, so I believe the risk rewards in the meantime for one last lurch higher is favorable.
Don’t pay more than $4.25
Here are the specific trades you need to execute this position:
Buy to Open 24 December 2024 (NFLX) $820 calls at…………$60.50
Sell to short 24 December 2024 (NFLX) $825 calls at………….$56.40
Net Cost:……………………..…….………..……..................................$4.10
Potential Profit: $5 - $4.10 = $.90
(24 X 100 X $.90) = $2,160 or 21.95% in 24 days
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
