Yesterday, we bought calls on Netflix (Nasdaq: NFLX), so today I’d like to ask you how it went.
Before I get to that though, a quick update on our trade: For our entry prices, we’ve decided to pick the average between the option price right after the alert went out and the price one hour afterward. This gives us the most accurate view of the overall entry point for readers. See, the option was so volatile after we sent the alert, that by taking the average, we’re picking a price closer to where you likely entered.
That being said, our entry price was $3.98. And right now, the calls are up about 45%.
I understand that I may have a different entry price from you, and therefore our official price to sell half the position for a 50% gain may not give you that same 50% gain. With that in mind, you should adjust your standing sell orders accordingly.
Action to take: Adjust your existing Good ‘Til Canceled limit order to sell to close half the Netflix Inc. (Nasdaq: NFLX) November 2016 $120 calls (NFLX161118C00120000) to whatever limit price nets you a 50% gain.
For our portfolio, we’re lowering them so that we will sell half the position at $6.
Going forward, I’ll no longer give an exact exit price in the trade directions. Instead, I’ll direct you to place your exit price so that you collect a 50% gain from half the position based on your individual entry price. That should clear up some confusion. Just keep in mind that my alerts and updates will be based on the official portfolio prices.
As for getting your opinion about this trade…
In order to make this research service great, your feedback is crucial. It’s why I created this beta test — so that you can tell me how the service works for you.
More specifically, if you choose to follow my recommendations, I want to know how easy it was for you to make the trades, what price you are getting in at on my recommendations and what kinds of returns you saw.
So please take a moment to fill out this brief survey below. All of the questions are related to the trade alert I sent you yesterday.
It should take less than five minutes to complete, and it will go a long way toward helping me perfect Earnings Drift Alert.
As for the other possible trades this week, I’m watching to see if our parameters are met. If they are, I’ll be sure to send you an alert soon afterward. If not, you’ll hear from me next week with an update.
Until next time, good trading…
Editor, Earnings Drift Alert