Netflix and Chill Week 4 2020
The Winning formula
For the fourth week of collecting passive income we use technical analysis set with custom parameters.
These parameters give us greater than 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 4 Updates Dec 10th-18th 2020
Dec 10th Actions
- 17 Iron Condors sold on NFLX weekly options that expire Dec 18th 2020
- 27 Strangles sold on NFLX Weekly options that expire Dec 18th 2020
- 27 Strangles purchased on NFLX Jan 15th 2021 options
- Over $7,000 collected in premium
Dec 11th The Breakdown
- Account equity value sits at $106,737
Dec 14th The Breakdown
NFLX stock rallied to the top of our defined range. We took advantage of this rally, by selling the majority of long term call hedges for a profit. Some short term calls where purchased back only to reduce margin requirements.
Dec 18th Actions
- Remaining contracts expire out the money
- Value was lost on the long dated put hedges. NFLX stock continued to rally after some call hedges were liquidated, This maneuver cost us massive gains and adjustments will be made in the future to not make the same mistake.
- Click the link below to find out about Week 5
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