Michael Shulman, Expert Trader, Analyst and Educator

Michael Shulman, Expert Trader, Analyst and Educator

If consistent profits are your goal, here’s a gift that will keep on giving…

A friend I had dinner with last weekend gave his sons one-year subscriptions to Netflix (NASDAQ:NFLX). It’s part of his strategy to wean the kids off the parental cash flow.

A good idea, that… and so is giving yourself the gift of Netflix—the stock and the weekly 90 call.

NFLX has been bouncing around. The market is moving. If you buy NFLX stock at market for let’s say $90.25, you can sell a somewhat in-the-money call for $2.35 or more.

You may lose $.25 when you sell the shares (oh my!), but keep the remaining $2.10 as a gift from the market gods.

That’s a 2.3% return in a week.

Plus, if the stock sells off, you own it at a cost below $88.

One last idea…

This is also the best way to trade the FANG stocks: Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix and Alphabet (NASDAQ:GOOG).

Sell that in-the-money call to give you some downside protection and—if you get called out—wonderful profits you can duplicate the next week, and the week after that, and so on.

Think about it.

Share This