Timing is Everything

October 3, 2017

 

Timing is everything! Yesterday we saw an opportunity with Netflix (NFLX) and issued an alert. Looking back we probably set the stop loss too tight at only 13.4%. But all the indicators and historical data indicated we bottomed.

 

The alert was a limit order to buy NFLX Oct 6 2017 $177.5 Calls at $2.25 with a stop loss of $1.95 and a 40% target return at $3.15.  Things looked great, after issuing the alert the option was up 8%. Then we saw some strange activity in the markets. The SPY dropped at 3pm (only for a moment) from 252.13 to 251.29, a whipsaw that acted upon NFLX and causing in to momentarily hit the stop loss. 

 

NFLX immediately came back above the stop loss and this morning looks to open up significantly.  If you were not stopped out and held you are in a good position this morning to make a great profit.  

 

We have no idea what caused that momentary drop and we could not issue a new stop loss in time to prevent the auto trade brokers from exiting. It is unfortunate but it is also a way of protecting major losses by limiting downside risks.  We are up for the year about 700% and we are still positive that we could make to to 1,000% or better.  We want to especially thank all our subscribers.  Thank you.

 

UPDATE - The NFLX options today hit $16.23 - a return of 626%

 

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