Our immediate target for Netflix (NASDAQ: NFLX) call options was reached late yesterday. We decided to take profits on half of our holdings for a gain of 100% within the same day of purchase. That means the balance holding is free of cost to us as we have already recovered our total cost by selling half the portion.
Our entry price on the January 2010 $60 call options was $45 per contract. We sold half of the contracts at a premium of $90 per contract giving us our 100% gain. In the last 5 trading days, the stock price has gone up nicely from around $53.5 to trade at around $57 at the time of this writing. We usually do not tend to hold on to a trade after it has reached our target. But this time we see good momentum in the stock price and feel we can let it run for a little while longer. Plus the chatter on a takeover is increasing.
Reed Hastings is smiling and so are we.
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