Netflix and Chill Week 3 2020
The Winning formula
For the third week of collecting passive income we use technical analysis set with custom parameters.
These parameters give us over a 99.9966% favorable odds.
The Breakdown
Winner$ Lane
- To achieve our passive income goal we sell out the money options using NFLX stock as the underlying asset. Advance technical analysis determines the option selling strike price.
- For hedging and risk mitigation purposes. Long dated calls and puts are purchased.
- Weekly option sales currently have a 99.9966% chance of expiring worthless.
- Long dated hedges create additional confidence and peace of mind.
- Options lose time value exponentially, There will be little effect of time decay on NFLX long dated option hedges compared to the short term option sales.
Bang Bang Money-Game 4LYFE
Week 3 Updates Dec 3rd-10th 2020
Dec 3rd
- Rolled option contracts that expire Dec 4th 2020 to contracts that expire Dec 11th 2020
Dec 3rd 2020
- 7 Bear call spreads sold that expire Dec 11th 2020
- A mixed combination of puts and calls sold that expire Dec 11th 2020.
- Over 2k in premium collected for Week 3
Dec 3rd 2020
- Account sits at $102,605
Dec 4th 2020
- 10 short strangles sold that expire Dec 11th 2020
- 13 bear call spreads sold that expire Dec 11th 2020
- 5 Long dated strangles added to bring total to 10
- 2.1k left of time value in derivatives sold
Dec 4th 2020
- 10 strangles sold that expire Dec 11th 2020
- 13 Bear call spreads sold that expire Dec 11th 2020
- 5 Long dated strangles added to bring total to 10
- 2.1k left of time value in derivatives sold
Dec 7th 2020
- Profit rolled out of 6 long term call hedges during a rally today.
Dec 8th 2020
- 2 Bear call spreads sold for Week 4 expiring Dec 18th 2020
- 3 Bear call spreads sold later in the morning
- 1 Bull put spread sold to create an Iron Condor setup with 1 existing Bear call spread
Dec 9th 2020
- 5 Bull put spreads sold for Week 4 expiring Dec 18th 2020 to create iron condor setups using existing bear call spreads
- Long term option hedges sold. Volatility in the market brought a decent daily profit in the long term put contract hedges.
- All out the money puts for week 3 bought back out for profit.
- 22 Bear call spreads and 1 sold naked call remain for Week 3
- 5 Bear call spreads sold for Week 4 ending Dec 18th 2020
Dec 9th 2020
- Account Equity Balance at $105,589
- $149 remain in time value for Week 3 contracts. These we will let decay more, while rolling a few to Week 4 ending Dec 18th 2020.
Dec 10th 2020
- Remaining weekly contracts closed out for this week and rolled to new contracts for Week 4 expiring Dec 18th 2020. Follow the link to track Week 4 results
Stay updated
Click the link below to follow up on the latest updates to our passive income system.