The Calm Before the Storm on Netflix (NFLX)

We wrote about Netflix (NFLX) last week, calling for a move to $90. It doesn't take much research to see we had that wrong. It was a bold call, but being right on bold calls while trading options can equal huge gains if you are on the right side of the trade. We still feel like an 8-12%+  upside move is coming on Netflix in the next few trading sessions. Why? Well it seems the negative sentiment on the stock has faded, and there seems to be quite a few folks waiting for another confirmation of a breakout on the stock. The breakout that will take it above $100.

Short interest decreased for the first time since August and looks like a break above $85 will entice more to cover.

The Netflix(NFLX) chart since start of November is uncharacteristically calm... a trend that will not continue for long. We are currently holding Dec 87.50 C and will be looking to add more call positions over the next few days.

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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