I picked up some calls on NFLX stock today and wanted to talk a little about my strategy for this particular trade. This is not my typical trade for the reasons that I normally don’t trade options and it’s not a momentum play. It seems that the trading gods are punishing me for trading outside my trade plan today as all my gains on  my ETF’s are being offset by NFLX stock declines.

I have observed in the past when a momentum stock falls off of my list it will often find support near it’s 20 week ema, unless there is something fundamentally wrong with the stock. I’ll cut my losses at a weekly close below the 20ema or I’ll hedge with a put option until the next level of support where I would close the put and add more calls.

The only other way I’ll get taken out of the trade is if my market timing system gives a sell signal on the overall markets.



8 Responses to “NFLX Stock Looks Attractive”

  1. sunz Says:

    hey jeff

    i am quite bearish on NFLX going forward…


  2. Abdul Rahim Says:

    I like RSI when above 50 (is strength). Still working on weekly, thanks for the tips Jeff. NFLX is in good business. Take Google, with little investment, they are sitting on mountains of gold. Google founders Larry Page and Sergey Brin now relax and maybe work on another movie, Broken Arrows 2.

  3. Abdul Rahim Says:

    I like the company but I usually stay away from those that hit year high unless I am Gordon Gecko. I learned alot from this classic movie. It inspired me whenever I see it again (seen it many times). INSIDE information give you advantage and greed is also good for the world. It create jobs. If not for greed, there is no Las Vegas. For a stock to hit that high, must have alot of bull in it. I'll wait for a good retracement if I want to be in.

  4. Abdul Rahim Says:

    The stock have a history of rebounced between 100 and 200 days SMA.

  5. Sunz Says:

    Jeff, are you buying the dips? Seosonally this will remain sideways till end of August…

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