MamaCash 8:58 am on Tuesday, June 12, 2018
Tags: supercharger ( 160 )

NFLX #supercharger Opened Jun22 352.5/357.5c…

NFLX #supercharger Opened Jun22 352.5/357.5c @ 3.86 x2

MikeL 9:14 am on Tuesday, June 12, 2018

Trying a bit lower strikes.
BOT NFLX Jun22 350/355 Bull Call 4.06

Thank you MamaCash.
- MamaCash 9:17 am on Tuesday, June 12, 2018
  
  Good choice, @MikeL. Best of luck on this trade. NFLX has worked great for this trade. I’m on my third round in two weeks.
jsd501 9:43 am on Tuesday, June 12, 2018

I am going to give this trade a try. I put the spread on for 3.75
MamaCash 10:13 am on Tuesday, June 12, 2018

After getting feedback about doing a put credit spread rather than a call debit spread, I decided to give it a try. The RR seems about equal. I’ve got side x side BuPS and BuCS on NFLX. STO NFLX Jun22 357.5/352.5 BuPS @ 1.30. BTC target is .20 for a profit of 1.10. It’s a horse race. Who will get to profit fastest? Calls or Puts? 🙂
- john4419 10:27 am on Tuesday, June 12, 2018
  
  MamaCash How do you come up with profit target of 0.20 with the Put spread? Hope this is not a stupid question.
  
  I followed you with the 352.5/357.5 for 3.70
  - MamaCash 10:32 am on Tuesday, June 12, 2018
    
    When the value of the put spread goes down to .20, I prefer to take profit and move on. If the credit was .50 or less, I close for .10. It’s a personal choice.:-)
    
    @john4419. Target profit is 1.10. The GTC close price is .20. Sorry for the confusion.
- GH13 11:04 am on Tuesday, June 12, 2018
  
  These should both be synthetically equal or you would be able to arb the difference by buying one and selling the other creating a box and profiting. For most instances, otm options traditionally have tighter spreads than itm options so the put credit spread should be easier to get out of especially if NFLX moves up a lot.
  - MamaCash 1:30 pm on Tuesday, June 12, 2018
    
    Thanks. Yes, they are synthetically equal. However, in real-world trading, they aren’t always equal in terms of RR.:-) I think it’s a great idea to look at both and then take the best RR. In my recent experience, the DITM call debit spread has hit profit sooner but when vol goes up a bit, the OTM put credit spread wins. I’ve got both sides on NFLX right now so I’ll assume you’re voting for the put side to hit profit first. 🙂
whollows 10:53 am on Tuesday, June 12, 2018

Trying my first superchargers!
MikeL 8:10 pm on Tuesday, June 12, 2018

@kathycon
MamaCash,
What is your strategy if a #supercharger trade would go against you?
- MamaCash 6:29 am on Wednesday, June 13, 2018
  
  @MikeL Ah… the question about what to do in a worst-case scenario. Do we really have to talk about that? jk. These trades are directionally biased so the exit strategy depends on market trend and strength of the underlying.
  
  If bullish trend and stock strength still in tact, I’d roll my strikes down or possibly buy more on a pullback.
  If trend has turned choppy to neutral, I’d add a CCS to create a butterfly.
  If trend has reversed, I’d close for a loss and perhaps add a bear supercharger.
  
  I’ll update here whenever I exit or adjust a posted trade so you’ll know what I’m doing. I hope that helps.
  - MikeL 9:47 am on Wednesday, June 13, 2018
    
    Just trying to be prepared… 🙂