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) – SELL – TAKE PROFITS
SELL TAKE PROFITS Netflix, Inc. (NFLX) November 2021 $570-$575 in-the-money vertical BULL call spread at $4.95
Closing Trade
10-22-2021
expiration date: November 19, 2021
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This was a short-term trade that video streaming company Netflix, Inc. (NFLX) would STAY ABOVE the strike price of $575 in the next 30 days.
We got an instant reaction in just 2 days with NFLX exploding to the upside yesterday by 5% and topping it off this morning up another 1%.
The risk/reward for holding this trade until expiration is no longer favorable, and if there is a pullback, I would be inclined to go back into NFLX.
It would be nice if we could clock out with profits after 2 days for every trade, and I will take this one and on to the next trade.
We are full-go for risk assets in the short-term with big tech melting up and Bitcoin exploding to the upside.
Unfortunately, ad tech is dragging down the Nasdaq this morning upon SNAP announcing that Apple’s privacy features are disrupting the surveillance technology for ad companies.
Luckily, NFLX isn’t affected much by Apple’s changes.
As the migration to digital increases throughout the developing world, Netflix's subscriber base will soar.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
If you don’t do options, buy the stock because my yearend target is $700.
Here are the specific trades you need to exit this position:
Sell to Close 25 November 2021 (NFLX) $570 calls at…..………$91.15
Buy to Close 25 November 2021 (NFLX) $575 calls at………….$86.20
Net Proceeds:……………………..…….….....................……..…….....$4.95
Profit: $4.95 - $4.10 = $.85
(25 X 100 X $.85) = $2,125 or 20.73%
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.
