Thursday, November 02, 2006

Winning Trade on NFLX

Greetings everyone,

Paper traded by buying 5 contracts of NFLX Nov 22.5 Call on 23 Oct 2006 at $1.95. After earnings announcement, I sold the call options at prices of $4.90 and $5.30 respectively on 24 Oct 2006.

Reasons for buying a call contract - I researched that during the last earnings announcement on 24 July 2006, NFLX gapped down although net income from the Income Statement, cash position in balance sheet and cash flow were outstanding for 2nd quarter end June 2006 were good. has a report about confidence in the CEO. Also, runs a review of analysts expectation for this quarter earnings and most were positive.

Thus with all the above factors I bought a call.

The above (gapping analysis) was one of the technique taught by Dr Clemen Chiang to trade equity options when I attended the Live Freely Options Trading Seminar Workshop (Singapore).

You can take a look at my review of the Live Freely! Seminar HERE.

If you've managed to find out more about the Live Freely! Seminar from this blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Currently, I'm still working hard to achieve profitable trades consistently.

Wishing you Profitable in your Trading too.

Yours Sincerely,

Tony Chai