NASDAQ:NFLX Printed a similar shooting star type candle today that it has a few other times in this current downtrend channel. Bought Sept 6th P282 option today for 1.13 at NFLX 299.80. Looking for it to react similarly as it has before on a resistance touch/rejection, and hope to see around 278 sometime before or on Sept 6th. Happy hunting and GLTA!!
Trade active
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Sold one of two Sept 6th P282.5 options today for 100% gain to lock profits. Set stop loss order at entry of 1.13 on second option, lets see if it can ride on! GLTA!
Good luck hope that works, hope it takes the market down with it I loaded lots of spy puts today
UnknownUnicorn1314136
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@Shortatwill, I think that's a good play, I didn't load up but I also bought some Sept 6th SPY puts today. I am looking for a gap up open on or just above current resistance, then basically immediate selloff. i believe that would be our last required touch of this bear flag we're in now, and should free SPY up to see 274 area by the 6th at the latest. It's my "Plan A" anyway lol
Shortatwill
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@DIVERTER, wow keep calling! 274 by 6th would be money in the bank!
yenle0290
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R u still holding it?
UnknownUnicorn1314136
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@yenle0290, Sold one at 2.28 on Friday near the lows, but yes still holding one put option. Will most likely try to sell tomorrow unless it just absolutely dumps, which could happen IMO. Looks to me like if the line shown on the chart I attached breaks, so below around 286.50, then it could be sitting at 278ish by Friday. So, if it holds above 286.5 tomorrow I will be selling, probably for about 1.35 or so. If not though, I am looking for 278 and to sell more in the 3.50 range. Best wishes on your trades!
yenle0290
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@DIVERTER, thanks. i got 2 contracts but I think I got IV crushed on them. Would u recommend average down or just sell for loss?
UnknownUnicorn1314136
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@yenle0290, Sorry for the delay, just saw this. Well, I sold today because it bounced exactly where I was looking for it to, at 286.50. It actually made it to 286.51, then bounced straight back up. That was the cue I was looking for as I mentioned in my earlier message. So, I went ahead and sold. In your case honestly it depends on other factors, like the time to expiration and amount of loss now. NFLX is still bearish until it breaks the channel, so you could possibly roll them into further away options, like a Sept 20th or so. I personally like to cut losses and try to get them back elsewhere, but that's just my style. Best wishes