NFLX ~ Had a feeling stock may rally a bit as it held its ground after earnings and was treading higher. Bought the calls when the stock was at $60. Next day it shows some strength in the mid-morning and ramps higher the rest of the day on strong volume from a so-called buyout rumor from MSFT. Could have sold as high as $5.10 on the calls but settled for 2 filled. $382 could have been $15k instead sold for 6,682.
10/25/2012 09:46:29 Bought 10 NFLX Oct 26 2012 65.0 Call @ 0.13 -147.66
10/25/2012 14:00:36 Bought 23 NFLX Oct 26 2012 65.0 Call @ 0.09 -234.64
Total Cost : 382.3
10/26/2012 14:43:37 Sold 16 NFLX Oct 26 2012 65.0 Call @ 2.59 4,121.63
10/26/2012 14:51:17 Sold 17 NFLX Oct 26 2012 65.0 Call @ 1.52 2,560.91
Total Sale : 6682.54
I then went and bought the $75 calls for next week as I the action looked extremely bullish irregardless of BS buyout rumors NFLX always has. Option prices were higher now then they were before earnings, which was very odd. Bought 50 @ .40 and they closed $1.25 an hour later. I held them through the weekend even though they were already a 3x bagger.
10/26/2012 14:54:24 Bought 50 NFLX Nov 2 2012 75.0 Call @ 0.4 -2,048.34
Of course Hurricane Sandy comes and the market is closed Monday and Tuesday. The odds of the market ever closing is minuscule and the fact that the option values decayed drove me nuts, but its the game we play and know the risks. Figured NFLX would open flat or maybe red and the calls would be .60-.80. Turns out Dealreporter comes out to squash the buyout rumor and NFLX opens down 4% on decent volume. Watched as the bottom fell out and the stock went to $65. Some reason my gut said the stock should be down more, and Fridays volume was a ‘tell’ for me that someone was bidding up the stock. So right near the bottom I bought 40 more the $75 call @ .14, even though they expire in less then 3 days and I would need the stock to move $10 to make some nice money. Also bought some of the 90 calls @ .24
10/31/2012 09:39:06 Bought 40 NFLX Nov 2 2012 75.0 Call @ 0.14 -600.67
10/31/2012 09:40:18 Bought 18 NFLX Nov 17 2012 90.0 Call @ 0.24 -455.80
What i was saying in Chat that day before the ICHAN news that vaulted it from $70 to $85 in seconds:
2012-10-31 02:30:22 PM jimmybob $75+ this wee
2012-10-31 02:30:18 PM jimmybob we know interantional was going up expense wise... non event imho
2012-10-31 02:30:27 PM jimmybob follow the money flow
2012-10-31 01:34:35 PM jimmybob why you folks want NFLX to die?
2012-10-31 01:34:52 PM jimmybob someones bidding her up last two days... dosnt need buyout rumors or other bs
Of course i saw the volume and surge, stock was halted at about $76 for circuit breaker. Put my order in during the halt to sell some @ $4
10/31/2012 15:04:40 Sold 50 NFLX Nov 2 2012 75.0 Call @ 4 19,951.21
I actually tried to change my order to $5 when it started up but it filled me right away. Stock then vaults all the way to $84.95, then gets halted again. The remaining 40 contracts are now worth $10 each x 40 = $40k. If had put an order in to sell all at $10 would have $90k sale. Instead I put my order in to sell the rest for $7 while the second halt is happening. They never fill and i have to drop to $6 to fill.
10/31/2012 15:14:51 Sold 40 NFLX Nov 2 2012 75.0 Call @ 6 23,958.79
Morale of the story is, if you read every where, 95% of folks are bearish and will give you 99 reasons why you should be short the stock...ect, Meanwhile i just took $2649.01and turned it into $43,910.
If you add fridays trades it’s : $3031.31 into 50,592.54 in two trading days. It doesn’t always happen like this, and I have plenty of losers, but when they pay it can be very rewarding!
Happy Trading!
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