On May 25th we initiated a long call position in NFLX. Over time, we added a credit put spread to the position and eventually sold calls against the long leap position to lower the cost basis. Now that July expiration is right around the corner, we are going to sell the August puts against the existing position to once again lower the cost basis of the Leaps we own. If you look at the chart (above) you will see that the stock is caught between two gaps. The reason we are selling puts at the 70-strike price is so the support level gives us some protection on the way down.
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