The weekend is already here and I consider it expedient to provide updates on some of our recent option trades. Today, I will revisit the Netflix (NFLX) option trades from June 10 and the GoPro (GPRO) option trades from June 11.
Update on Netflix Options Trade
On June 10, I wrote about NFLX options trade in a post titled, “Update on Netflix Inc. 5 Months Later”. In that post, I revisited previous NFLX call options coverage. I talked about how the NFLX Jul 2015 450.000 call (NFLX150717C00450000) that I recommended had gained an incredible 568.85% in six months. I concluded that post by recommending that you buy the NFLX Dec 2015 650.000 call (NFLX151218C00650000) at an asking of $67.66.
When I wrote that post, the shares of Netflix were trading around $647.15 per share. As at 2:02PM EST today, the stock was trading at $661.29 to mark a gain of 2.18% within one week. The options contract that I recommended at an asking price of $67.66 was already commanding an asking price of $79.55 in today’s session to mark gains of 17.57% within one week.
I am still long on NFLX and I recommend staying long on the recommended call options. You might want to consider locking in your gains by moving the stop/limit loss order to $78.00.
Update on GoPro Options Trade
On June 11, we covered GPRO call option trades in a post titled, “Buy GoPro Calls, Ignore Citi Analysts”. In that post, I discussed how two analysts from Citi Research Group have been showing a pessimistic outlook on GoPro’s prospects. I mentioned that they think GoPro might end up as a passing fad as people are becoming more interested in drone than action cameras.
However, I revisited the performance of the GPRO call options from an earlier post. I then realigned my options trading thesis with the unlimited possibilities in GPRO calls. I concluded that piece by recommending that you buy the GPRO Oct 2015 60.000 call (GPRO151016C00060000) at an asking price of $4.50.
When I wrote that piece last Thursday, the shares of GoPro were trading around $56.88. As at 2:02PM today, the shares of GoPro had gained 0.29% in intra-day session to a trading price of $58.45. In essence, the shares of GoPro have gained 2.76% within one week.
The GPRO Oct 2015 60.000 call (GPRO151016C00060000) that I recommended at an asking price of $4.50 has also done well. The contract opened at $5.34 today to suggest gains of 18.66% from an asking price of $4.50 within one week.
I recommend staying long on GoPro stock and options because the fundamentals of its upside potential has not changed. Nonetheless, you should manage the GPRO Oct 2015 60.000 call (GPRO151016C00060000) properly with stop/limit loss orders. I will set stop/limit loss order to $4.90 and watch patiently to see how the stock will fare in the new week.
— Daily Option Alerts