HAL9000

NFLX: Play the earnings on the long side

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HAL9000 已更新   
NASDAQ:NFLX   Netflix, Inc.
Beautiful uptrend in NFLX continues, supported by excellent fundamentals. This is one of my growth stocks of choice. If you own it, you have made the right choice. If you don't, it's not too late.

BUY JAN 26'18 $235 CALLS to get exposed synthetically. This provides full upside exposure with no risk of downside if the stock tanks on disappointing earnings. Should the stock go down on earnings, the resulting volatility pickup should allow you to sell an OTM put to make up for your lost call premium. Or just lose your call premium and move on. I paid $4.50 for the calls. Against this cost, I have unlimited upside, which is the kind of Risk/Reward I like.
評論:
With the stock up some +13% after hours and post earnings release, the calls are in the money by some $15 against an initial investment of $4.50 - This is an effective reward/risk ration of 3.3x. Quite a successful trade for now. Let's see how we unfold this tomorrow during trading hours.
評論:
Sold the calls yesterday to close the position during the trading session at $17 against a purchase price of $4.50 the previous day. This is a return of 277% for an effective R/R of 3.8x.
交易結束:目標達成

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