I PWNED NETFLIX THIS WEEK

The harder I work, the luckier I get.  I will not discount the element of luck that went into cashing out some Friday Netflix calls a bit earlier.

It all started Wednesday afternoon…

I had the triple intraday confluence to work on the Nasdaq.  Once I was able to scale off some futures I turned my attention to momentum stocks—to see if there was something I could carry overnight.  Netflix had a nice, tight consolidation so I took Friday $110 calls around $1.40.

Thursday morning I had little intention of selling into the morning strength.  I wanted to keep these calls for the FOMC minutes.  As the morning progressed Netflix was hammered and down like 4% on the session.  This rendered the calls I held nearly useless.  I had room to add to the position so I entered a ‘stink bid’ down at $0.15, yep, 15 cents.

No more than 5 minutes later some chatter emerged that Netflix would raise their monthly subscription rate by a paltry dollar, a brilliant tax increase heading into the desolate winter.  The stock went ape shit, reversed its loss, and trended high all day.  I booked some late yesterday and the rest this morning.  The overall gain was about 300%.  The gain on those fifteen cent purchases was about 2500%.

The feeling of being on the right side of a fluke rumor? Priceless.

I want November calls in something now.  Something longer duration.  Maybe at the close.  Maybe next week.  I’m moving slowly today.