Introduction
I’ve written a series of articles highlighting ways to leverage options trading to augment a long position or potentially entering into a position in Netflix Inc. (NASDAQ:NFLX). I’ve highlighted ways in which one can layer in covered calls to mitigate risk in a long position as well as utilizing secured puts to enter into a position at a lower price or avoid owning the stock altogether while making money. Whether you’re investing or trading in Netflix, it’s difficult to own the stock without an options strategy to augment the long position or prospective position. I’ll discuss a covered call/secured put combination strategy to unlock additional value, mitigate risk and generate income. I’ll break this strategy out into legs to exemplify the power of options when dealing with an intrinsically volatile stock with significant upside potential such as Netflix. Continue reading "Netflix Losses Mitigated By 86% - A Covered Call/Secured Put Strategy"
