The premium on our Netflix (NFLX) spread has fallen by half. Let’s book profits now, earning a 4% return in five days, or 292% annualized.
Current Stock Price: $249.79
Cash in Hand: $0.40
- Buy to close the NFLX Aug Week Four (8/26) 215 Put for around $0.60
- Sell to close the NFLX Aug Week Four (8/26) 210 Put for around $0.40
- Set initial net debit at $0.20, but adjust as needed to close today
Profit: $0.20, or $20 per spread