Shorting NFLX probably wasn’t the best 1st trade after a few years.
Well for the past couple days I’ve been pretty fucking psycho because I’ve been wanting to get back into the market, but maybe I just got into the trade toooooo late. I bought put options on NFLX Monday at close and got out of my position Thursday afternoon. I had April puts in February so I wasn’t completely sweating but each time I looked at the chart I just felt I got into the trade too late. Story short, it just seemed at around $400 NFLX had been beaten down enough.
I only got out profitable (made $200 bucks whoo hoo for nothing but stress) and that’s ONLY really because of inflation news drawing down the entire market on Thursday with the Fed raising rates a half over a quarter percent, lucky me I guess. It’s the only reason NFLX fell enough for me to be positive and not slap myself for losing easily half my account.
I got into the trade after the run up move predicting continual downward motion but it went sideways and that’s when I went sideways psycho. I also learned being in “options”, it’s so not worth it. Even if in warnings season and bad news for NFLX even I was thinking “I love NFLX, their stuff is still better than their competitors” so I don’t know why even with the change in the big charts I got into a shorting position on NFLX. wtf Paul? And to be honest I put $5000 in my account basically to gamble it which is totally horrible because I don’t see the market anymore as probabilities and statistics. It’s really just a big gamble either it’s going up or going down (and going sideways counts as going down because of stock options time valuation – intrinsic value). Real estate is much easier just much slooooower.
So make sure you really believe in your trade or get out is my advice. If you can shove your pride away and sell when you realized you are wrong AND take responsibility for that you are on the road to a long prosperous future my friend. So when I get a chance next I am testing out real money on “covered calls”. Do you know in the 10-15 years now I have done trades I have never done what I was taught the only trade you SHOULD DO if you don’t do anything else. Hm. I was “told” by my teacher Gary Williams that you can’t make less than 5% on that trades. I guess I shall see. If you do covered calls what has your experience been? Do you get called out immediately if the trades move in your direction and make and easy 5%+?