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JAN 2021: NFLX $545 – $555 Bull Call Spread

Stock

NFLX

Trade Structure

$545- $555 Call Spread

Trade Date

1/25/2021

Price Paid

$500

Expiration Days

2/26/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

I have been waiting for this one after NFLX hit $593 on great earnings and subscriber growth. I took the trade based on the previous support levels of NFLX before the earnings report came out. This is how I usually trade earnings. Little did I know that we have a pullback coming up. The pullback really dragged NFLX all the way down to the next support at $515 and many of our members got into this trade at really sweet lower strikes. But within 1 day we are hovering back where we were before the pullback.

Trade Selection Criteria

Overall market movement

We had a nice pullback in the entire market which allowed us to put on 18 trades this week.

No Earnings or Significant News

This is a post earnings trade. These trades are always taken after earnings announcements.

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside the Keltner Channels.

RSI Analysis

This is a post earnings trade. Our regular indicators don’t apply here.

N/A

ADX Analysis

This is a post earnings trade. Our regular indicators don’t apply here.

N/A

Trade Analysis

Analysis will be updated when we close this trade.

Trade Outcome

PENDING

Profit/Loss

$N/A

Beginning Account Balance

$10,127

Ending Account Balance

$N/A

To follow along the strategies we use in the $25K challenge, we recommend that you get the strategy book which explains the whys and wherefores of our method. Get it here=> https://amzn.to/2MUOCE5

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