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.
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Tech Alert - Netflix, Inc. (NFLX) – BUY
BUY the Netflix, Inc. (NFLX) September 2022 $260-$265 in-the-money vertical BEAR PUT spread at $4.00
Opening Trade
8-19-2022
expiration date: September 16, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This is a bet that NFLX will stay below $260 in the next 28 days.
Jobs are rolling over and that means lots of firings in tech companies.
One of the first discretionary services to get cut are dreadful products like Netflix (NFLX) whose content quality has fallen off a cliff.
Someone needs to fire the content quality control over there.
Here are the specific trades you need to execute this position:
Buy 25 September 2022 (NFLX) $265 puts at………….………$29.60
Sell short 25 September 2022 (NFLX) $260 puts at………….$25.60
Net Cost:……………………..…….…........................……...…….....$4.00
Potential Profit: $5 - $4= $1.00
(25 X 100 X $1.00) = $2,500 or 25.00% in 28 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.
