$NFLX has been falling ever since making new record highs earlier this year. No one liked this stock at $50 (except us) and everyone liked it at $350+. Go figure.
The stock is in pullback mode and I think the break of support will send the stock under $300 in the short term. There is a chance the stock will pop at support. I'm not going to ignore that possibility. Here is the risk reward trade I will put on:
$NFLX $330 December puts 3 contracts at $3.00
as a hedge one contract of December $350 at $2.25.
I think $NFLX is a great stock to own, but I also think the selling is not over just yet.