sell -2 April 22, 2016 $99.50 calls at $0.71
Why did I place this trade?
- earnings were released on 4/18
- stock dropped on 4/19
- I was bearish (short-term) on NFLX
- 76% probability of success
4/21/2016 (12:58:51 pm, PT)
buy back calls at $0.05
PROFIT: $132 (in 3 days)
The high implied volatility of NFLX kept this call premium at $0.11 most of the day even though the stock was over $4.00 OTM with just 1 day remaining until expiration.
The call premium finally dropped to 5 cents with just 1 minute left in the trading session.