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