Trade Alert: Lock In a 100% Gain in Three Days!

Our calls on Netflix (Nasdaq: NFLX) continue to hand us quick profits.

This past Tuesday, we bought calls after Netflix reported earnings that exceeded our parameters — triggering a trade. Yesterday, we locked in a nice 50% gain on the first half of the position.

And now, just three days after entering the trade, the last half of our position is already up by the triple digits — we’re now sitting on a 130% gain.

So, as I mentioned yesterday, we’re going to adjust our stop-loss order higher to lock in a greater gain. Instead of protecting 10% of our profits, we’re going to protect 100% as this position continues to climb.

Keep in mind that the trade directions below are based on our official entry price of $3.98. So be sure to place your stop-loss order at whatever price nets you a 100% gain based on your individual entry price — and just remember to use a stop-loss order. Otherwise your trade could be triggered right away, and we want to ride this rally higher.

Here’s the action we’re taking:

Action to Take
Sell Action to Take
Stock: Netflix Inc. (NFLX)
Option Type: Call Option
Expiration: Oct-21-2016
Strike Price: $120
Option Symbol: NFLX161021C00120000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $8
Trade Deadline: Keep this order open until it is filled or canceled.

Some of your 100% stop-loss orders may be triggered sooner than others based on your entry price — but that’s OK. You’re still walking away with a 100% gain on the last half of the position and a 50% gain from the first half — netting you a 75% overall gain.

We’ll continue to keep you updated on this trade, and if the calls keep rallying, we may adjust this stop-loss higher. Just keep an eye out for my alerts.

Hope you have a great weekend.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert