Our Profit Target order got filled at the open for a $1600 profit. We might have even gotten a bit more if we had gone for it, but I wanted a solid fill. Soon after the open NFLX dropped down to the $144 area where it is sitting now.
NFLX has an earnings announcement on Monday after the market closes. We are setting up this trade to use the high IV of the APR21 options to get a large credit that we are protecting with the lower IV MAY12 options. This allows us to create a profit on the trade as the short term IV collapses after the earnings announcement.
NFLX moved against us near the end. We closed this position to avoid the risk of additional losses.
NFLX has been on a strong bull run for the last 9 months. It is also trading with the lowest IV it has seen in the last few years. This combines to give us a great opportunity for a Bull Call Calendar Spread.
Sorry everyone. I made a mistake on the SMS alert. This is a $1600 profit instead of $1100. Hopefully, you can forgive me.