The premium on our Netflix (NFLX) spread has fallen to around a dime. Let’s book profits now, earning a 3.8% return in nine days, or 154% annualized.
I am also recommending we book profits on our Visa (V) put. We’ll earn 0.3% in four days, or 26% annualized. While this is on the low side for us, we’ll be reducing our risk ahead of the long weekend and freeing up a lot of capital for new trades next week.
NFLX Sep Week Two (9/9) 200/195 Put Spread
Current Stock Price: $230.91
Cash in Hand: $0.30
- Buy to close the NFLX Sep Week Two (9/9) 200 Put for around $0.25
- Sell to close the NFLX Sep Week Two (9/9) 195 Put for around $0.14
- Set initial debit at $0.11, but adjust as needed to close today
Profit: $0.19, or $19 per spread
V Sep Week Two (9/9) 192.50 Put
Current Stock Price: $201.31
Cash in Hand: $1.03
Action: Buy to close the V Sep Week Two (9/9) 192.50 Put for around $0.49, but adjust as needed to close today
Profit: $0.54, or $54 per contract