Some last minute out-the-money call buys in NFLX have caught the eye of our HeatSeeker. I took advantage into the EPS tonight by trading the following spreads:
I did the January 20th expiry 122 versus 120 puts 1 x 2 for a $1.00 credit. I keep that credit if shares are above $120 Friday January 20th. In fact, I make money down to $118 on this put spread.
Next, I did the next Friday January 27 expiry 140 calls long against this week’s January 20 expiry 140 calls short. That’s 1:1 and also known as a Calendar or Time Spread. Its max profit occurs if NFLX is $140 on Friday.