Betting On Netflix

I kept going back and forth on whether I should put on an option trade in Netflix this earnings quarter like I had last quarter.  After reflecting, I put a position on with more caution than before because how frothing the stock had become.  Believe it or not at the same price I felt comfortable buying in at before which was $150.  The trade I made was the Jul17 $150 strike for $2.19.  This option expired on the 21st of the last month.  I earned money again betting on Netflix.

I Made $420 In A Week Off Selling Put Option on Netflix

The Result

On the day of earnings, Netflix reported after market close and during after market trading, it hit $178.  So it looked pretty good that I would keep my cash on hand for one other option trade.  I planned to take position in STMP with premium outlooks of $7.45 for an August expiration.

I know what you are thinking, wouldn’t you want to $17 move over that $219 premium and my answer is sure I would, but I usually trade options for cash flow.  My long term portfolio is benefiting from this uptick as I own some shares of Netflix.

In Closing

I earned money again betting on Netflix and it’s a great return on my money for a one day position.  I closed the position on 7/18 for $5.  The return on investment was 1.5%.  I’ll take that.