OmahaCharts

Technical Analysis of Financial Markets

OmahaCharts Banks Coin in Netflix

OmahaCharts Banks Coin in Netflix

This morning I took down my biggest win yet in Netflix puts. Due to my travel schedule and being away from the screens end of last week and through the weekend, I have very few open positions. One of the few however turned out to be my best realized gain of all time in short term weekly option bets:

Transactions

06/07/2017  10:49:18Bought 3 NFLX Jun 16 2017 160.0 Put @ 0.65

-204.27-204.27

Transactions

06/12/2017  09:36:09Sold 3 NFLX Jun 16 2017 160.0 Put @ 7.05

2,105.672,105.67

For those of you not well versed in options, let me explain what the above means so that you understand…

On Wednesday of last week (the 7th of June) I bought contracts on Netflix making a bet that the stock would fall. My bet would turn out to be correct. This was a very simple directional bet so you fancy pants spread traders would be bored. However, you fancy pants spread traders aren’t banking 10 baggers either. Due to this being a weekly option, out of the money bet, while I was travelling I bet very small. The above equates to 3 put contracts purchased at 65 cents ($65 per contract) and sold at seven dollars and five cents ($705 per contract).

$65 x 3 = $195 initial investment

$705 x 3 = $2,115 sold to close

$2115-195 = $1920 win. (minus commissions)

Not a bad win for being away from the desk. Maybe I should leave more often?

I’ll be sure to post about the next trade before I take it. However, I would strongly suggest playing along at home. After a large win like this, my life tends to spiral into a series of unfortunate events from which I cannot recover.

Good Day.