Stock / Symbol: Netflix/ NFLX
Option Strategy: bull put spread
Trade entry date: Dec 15th
Price at trade post: $178.15
Max Profit: $300
Max Risk: $700
Max Return: 42.86%
Profit Range: $163.50 +
Max Profit at: $165 +
Reasoning: We got our expected rebound in NFLX and want to close out this trade for a quick 22% gain. The trade is looking good, however, so you'd be in good shape if you'd like to hang on till Jan expiration and go for the full 42.86% return.
Trade Details:
STC 2 NFLX Jan11 160 Puts
BTC -2 NFLX Jan11 165 Puts
for a net debit of $0.72 per contract
Realized Profit: $156
Realized Return: 22% (before commissions)
Chart:
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