BE READY TO BUY CALLS ON NETFIX NO RESISTANCE TILL 340
Obviously the results on NETFLIX WERE REALLY GOOD financially speaking !!!!
What the market forget is the big picture that net subscribers increase a lot during the first two quarters at a higher price point.
this miss target happened last year as well at Q2 so seasonality is a factor here, especially people star their new subscription at the beginning and end of year mostly.
Very unlikely the stock will go south from here and i bet it will recover to 340 rapidly
So few strategies to play price when written 324,97
- SELL PUTS WHILE THEY ARE STILL EXPENSIVE AT THE MONEY OR SLIGHTLY IN THE MONEY : 1000 $ one month per contract
- buy the stock now and lock in the profit at 325 for 1000 $ again per contract : 3% locked over 1 month or take the strike higher to 340 $ : if triggered 1503 profit from shares + 510 $ contract = 2013 $ on 32497 = 6,1% over one month
I guess you get my point now , play around strikes and put/calls however you like and enjoy the money while the IV is high!
IF NOT TRIGGERED ROLL OVER THIS AND ENJOY THE PREMIUM + PROFIT
What the market forget is the big picture that net subscribers increase a lot during the first two quarters at a higher price point.
this miss target happened last year as well at Q2 so seasonality is a factor here, especially people star their new subscription at the beginning and end of year mostly.
Very unlikely the stock will go south from here and i bet it will recover to 340 rapidly
So few strategies to play price when written 324,97
- SELL PUTS WHILE THEY ARE STILL EXPENSIVE AT THE MONEY OR SLIGHTLY IN THE MONEY : 1000 $ one month per contract
- buy the stock now and lock in the profit at 325 for 1000 $ again per contract : 3% locked over 1 month or take the strike higher to 340 $ : if triggered 1503 profit from shares + 510 $ contract = 2013 $ on 32497 = 6,1% over one month
I guess you get my point now , play around strikes and put/calls however you like and enjoy the money while the IV is high!
IF NOT TRIGGERED ROLL OVER THIS AND ENJOY THE PREMIUM + PROFIT
Trade active:
MAYBE I WAS A BIT TOO OPTIMISTIC AS THE SHARES WAS STABILISING AT AROUND 320 BEFORE IT BROKE THAT LEVEL DOWN SO BE CAREFUL THE STOCK MAY PLUNGE QUICKLY BELOW 300 A BIT À LA TESLA BEFORE IT RECOVERS STRONGLY SO
NOW I WOULD JUST MONITOR THE STOCK PRICE AND LOOK FOR SIGN THE PRICE OSCILLATE SIDE WAY OR START PICKING UP THEN I WILL RIDE THE STOCK UP BUT SELLING AT THE MONEY PUTS AND ENJOY THE PREMIUM WITH THE DECREASED VOLATILITY ALONG THE WAY
YES I DID CLOSE THE TRADE FRIDAY AS I DONT WANT TO GET SHARES THAT ARE FALLING KNIFES , I BOOKED MY LOSSES , C EST LA VIE , HARD LESSON LEARNED DONT TRADE BEFORE EARNINGS JUST WAIT AFTER EARNINGS TO LIMIT THE FALLING SHARES BY 10 % OR PLUS THERE IS NO WAY TO KNOW OR IF YOU DO PLACE A STOP LOSS SPMETIMES THIS TYPE OF DROP DOESNT WORK - YOU STILL TAKE THE HIT
NOW I WOULD JUST MONITOR THE STOCK PRICE AND LOOK FOR SIGN THE PRICE OSCILLATE SIDE WAY OR START PICKING UP THEN I WILL RIDE THE STOCK UP BUT SELLING AT THE MONEY PUTS AND ENJOY THE PREMIUM WITH THE DECREASED VOLATILITY ALONG THE WAY
YES I DID CLOSE THE TRADE FRIDAY AS I DONT WANT TO GET SHARES THAT ARE FALLING KNIFES , I BOOKED MY LOSSES , C EST LA VIE , HARD LESSON LEARNED DONT TRADE BEFORE EARNINGS JUST WAIT AFTER EARNINGS TO LIMIT THE FALLING SHARES BY 10 % OR PLUS THERE IS NO WAY TO KNOW OR IF YOU DO PLACE A STOP LOSS SPMETIMES THIS TYPE OF DROP DOESNT WORK - YOU STILL TAKE THE HIT