Because NFLX works so nice, I re-established a trade in here.
I sold a Naked-Call and bought a Calendarised Debit-Spread, giving me a very wide profit range, even if Volatility kicks in or slows down.
The position is doing good so far (up round $250 p.c. ) and I expect price to drop down to the L-MLH, maybe straight, maybe after a pullback to the CL.
I closed the whole NFLX (and RUT) positions for nice profit way too early, but with a reason.
The S&P 500 dropped like a rock and volatility has risen remarkable.
For Options Traders, this is heaven to establish new positions.
This means I closed out NFLX to make my money work with more efficiency in a higher volatility environment by establishing new income trades that pay more.
To most Traders, this thinking is not really as fun as learning a new charting technique.
But let me tell you this: A higher ROC (Return On Capital) is vital for optimized income!
That said, I wish you all a great weekend.
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