3/26/2022 Plan:
This week we look at Netflix (Ticker: NFLX)
3/26/2022 Plan (continued):
- NFLX- Sell Apr 14 335/330 put spread for 0.55
- MARA – Sell Apr 22 19 put for 0.41
- Prices are as of market close 3/25/2022, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
3/26/2022 Commentary:
Netflix streams movies. You probably already knew that. You probably also have a subscription. Either way, this trade assumes that we hold the 335 level in the streaming giant for the next few weeks. Earnings are on the 19th of April and we will Not push this out another week.
Longer term members know that I like to dabble a bit in Bitcoin related names and MARA allows us to get in Quite a bit lower than current levels. I personally just sold shares at 28 and would be delighted to get in at 19 in a few weeks. DO NOT sell puts unless you are ok being assigned (sorry for shouting…)
Feel free to Reach out with questions on this or anything else!
3/28/2022 Entry:
Sold MARA Apr 22 20 put for 0.36. Sold NFLX Apr 14 330/325 put spreads for 0.49
4/3/2022 Update:
The NFLX put spreads are down to 0.32 at the midpoint, meaning we’ve captured about 1/3 of the premium and have 2 weeks left. With NFLX at 373+, I plan to hold through this week and try to capture more premium.
The MARA put is down to about 0.30, for a small profit so far of $6. I’m going to continue to hold – no planned change on this position this week. MARA is trading above 28.50 as of Friday’s close.
4/9/2022 Update:
The NFLX put spreads expire on Thursday. With NFLX trading at 355 and our short strike at 330, I plan to hold until late in the week to try and capture all of the premium. If I can take it off cheaply or we see a drop in NFLX , I’ll get out.
The MARA put is worth 0.73 at the midpoint and we are down on this trade currently. We have two weeks and about 2.50 between the current price and the short strike. I’ll take shares/roll if MARA is below 20 at the end of next week. For now, I’m holding.
4/17/2022 Update/Partial Close:
The NFLX put spreads expired worthless – $49 of profit per put spread sold. That should cover a few months of your Netflix subscription.
The MARA put expires this week and is still worth 0.68 at the mid-point. All of that premium will go away if we can stay above the 20 level (MARA is currently trading above 21). I will be leaving it on until late in the week – letting it expire worthless if it holds the 20 level or looking to roll down and out if it doesn’t. Note that earnings are currently May 10 – if one needs to roll, I would tend to roll to an expiration Before earnings (May 6, for example)
4/23/2022 Update:
MARA sold off last week and I rolled the put down to the 19.5 strike with an April 29 expiration. I took in an additional $24 credit to do so. Note that this does book a loss of $128, but we can more than make up for it if MARA recovers to above 19.5 this week. If not (market has sold off), then we can roll again, take the loss, or take shares and sell calls against it.
4/30/2022 Update:
With the market really tumbling last week, we rolled the MARA put from Apr 29 to May 20 taking in another 0.30 credit and lowering our strike price from 19.5 to 18.5. That is a loss on the inital put, but we can make all of the loss plus more (0.30) if it expires worthless in a few weeks. We will need the market and MARA to rebound for this to happen, of course.
5/7/2022 Update:
We have another 2 weeks on our MARA put and no planned change. With about 50 cents of extrinsic value, we want some of that to decay before we take further action. We may end up taking shares if it isn’t trading above our strike price by expiration.
5/14/2022 Update:
With BTC plummeting, MARA has lost quite a bit. We can close this week, take the shares, or roll. I’ll likely roll if I can lower the strike price in doing so, otherwise I’ll take shares and have a (small) exposure to BTC in my account.
5/22/2022 Update:
With MARA staying low, we took delivery of the 100 shares. One can now hold for a while, close to simply get out, or look to sell covered calls against it. Personally, I’ll do the latter as I like having a very small allocation to crypto. It may go to zero, but I am sized to accept that risk. For trade purposes, we close it out here as the loss.
