It was December 28 when we recommended buying Netflix (NFLX:NASDAQ) March 2008 25 puts (QNQOE), speculating that the underlying would plunge sub-$23 on technicals and Apple iTunes news.

I remember it well.  It was just weeks after Piper Jaffray upgraded the stock to a buy, days after Citigroup upgraded it to a Hold, and days after Credit Suisse raised price estimates from $30 to $33.  Funny… They did nothing more than prove that it pays to ignore big banks.  Do I have to remind you how they did with subprime bets?

Today, as the underlying stock trades at $22.73, the March 2008 25 put options trade at $3.60, a 106% gain in just weeks.

If you followed the advice, I’d love to hear how you did.  You can e-mail me directly at TheTradingPit@yahoo.com.  And be sure to stay tuned for our options service coming soon.

Congratulations on an easy gain.