Notice how well the two stock move together. Netflix is up 16% today (406.12 +57.32 last) on earnings.
Netflix reported earlier than Pandora and gives us a heads up look into what we might see from Pandora when they report. Note the tight long term correlation between these two securities.
Use options to manage risk if you are fearful of taking an outright position long in Pandora (P, 15.92 last).
Risk 3 times the 11-day Average True Range in Pandora. Upside to 20-25 in 1-3 months, 15.92 last.
Tim 10:03AM January 21, 2015
Comments
helpmoeny
⋅
Just wanted to personally thank you for this chart, I grabbed nflx and p they day you published this chart, HUGE win so far.
759820
⋅
Nice Tim ! =)
elcololp
⋅
AWESOME
Neemaf
⋅
wow... thats awesome
Mr_DL
⋅
You keep pumping P...
You must hold a lot of it...
Its been one of your rare losers
timwest
⋅
I used to do the same for Yahoo when it lagged all the other internet stocks for years. But yes, sometimes I am early on an idea and get a little tenacious. I love the Pandora service and think it is cheap. I just have to find times to buy it after people have dumped it and it is poised to rebound. I like to buy good companies when they look ugly technically on the charts. Pandora fits a lot of different methods for me. I currently have no position in Pandora. I got stopped out back in December. One winning trade and one losing trade so far, but break-even dollars.
timwest
⋅
Do you like the correlation with Netflix? Isn't that interesting?
timwest
⋅
I am in a position now of Pandora. Unusual for me to get in before earnings are released but the way Amazon and Netflix are acting, I think Pandora follows that lead and moves up to catch up.