Ramie 10:30 am on Monday, November 16, 2015

$NFLX Short Puts

Selling some additional premium to offset short call exposure.

Sold $NFLX Dec 4 (weekly) 100 puts @ 1.55

fuzzballl 10:47 am on Monday, November 16, 2015

$NFLX – Watching that closely also…this week I’m short 105 puts and 107, 110, and 112 calls. 106 at expiration please…LOL
- vxxkelly 10:49 am on Monday, November 16, 2015
  
  So all you need to have happen is have $NFLX close at $106, that doesn’t seem like too much to ask…. LOL
  - fuzzballl 10:52 am on Monday, November 16, 2015
    
    LOL…anything above 106 works. Mainly shorting weekly calls against short Leap puts collecting really nice premium. Repairing an earnings trade gone bad a few months ago. Starting to look like one of my better earnings plays!
    - Ramie 11:27 am on Monday, November 16, 2015
      
      I’m in a similar situation but in reverse. Pre-split/earnings run up and earnings in July with short calls and have been writing puts against them for the last several months. Has worked really well to chip away at the loss so I don’t need the short calls to necessarily get down to their strikes. In the meantime the put premiums have been great. Still I wouldn’t mind the stock being at or below 100 at December opex to take out much of my short call exposure, even if it means lots of puts being rolled out. But let’s all agree on 106, I can definitely live with that. I’ll give Reed Hastings a call and make sure he knows what the target is 🙂
      - fuzzballl 11:37 am on Monday, November 16, 2015
        
        LOL..been a crazy trade. To make it more fun I just did a “tastytrade” adjustment. Since I’ve got more short calls this week than puts I rolled the 105 puts up to 110 for another 1.55 credit. This is such a long term time frame against the Leap puts in Jan 2017 I’ve been rolling everything for max premium and then making adjustments on my weekly rolls. Total premium for just this week is 22.75. Obviously it won’t all be realized but a big chunk of it usually rolls off…
        
        fuzzballl 12:00 pm on Monday, November 16, 2015
        
        Roll the tested side or un-tested side?
        
        https://www.tastytrade.com/tt/shows/market-measures/episodes/roll-the-tested-or-the-untested-03-21-2014?locale=en-US
        
        john4419 12:16 pm on Monday, November 16, 2015
        
        Fuzzballl. What is meant by “trsted or untested?
        
        fuzzballl 12:21 pm on Monday, November 16, 2015
        
        The untested side of a strangle would be the side that’s not being threatened (the winning side). They like to roll that side a little closer to the money to collect extra premium. I like doing that to (sometimes) instead of just letting the thing set there nearly worthless. Of course you could just close it and re-sell later.
        
        fuzzballl 12:22 pm on Monday, November 16, 2015
        
        Of course this applies to short strangles…where you’ve sold an out of the money put and call.
        
        john4419 12:23 pm on Monday, November 16, 2015
        
        Thanks for the explanation

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