Tag Archives: nflx

Netflix(NFLX) on the Move!

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We had Netflix(NFLX) on our morning watchlist Monday, Tuesday, and Wednesday and also wrote a little piece after the close Monday where we spoke of the impending breakout of Netflix(NFLX) shares over $60 this week.

Here is what we were saying in our watchlist:

Monday

Stocks I am watching today with strikes:

LNKD 130 C | SINA 67.50 & 70 C | CF 230 & 235 C | NFLX 57.50 C

Tuesday

I am holding onto NFLX for the next few days, make sure you read my post last night: https://www.optionmillionaires.com/2012/netflixnflx-on-the-move/ . If not in, the 60 weekly calls maybe worth a gamble if there is not a huge gap.

Wednesday

This morning we have NFLX being reiterated as a buy at CITI with $120 Price Target. The stock is currently $58.70 PM and i think the catalysts are now in place for $60+ this week. Been banging the table since monday so hope you grabbed some of the 57.50s and 60 calls. NFLX will look to take advantage if stock breaks | $60 NFLX $62.50 C

 

It does not get any easier then this folks. The pre-market action was followed by non-stop buying pressure throughout the morning with small pullbacks. The end of day action was fast and furious with huge volume into the high of day close and the stock hitting $63.40+ in the after hours.

The $57.50 weekly calls finished up 775%, the $60 weekly calls finished up 2,316%, and the $62.50 weekly calls finished up 3,025%. The scary thing is we still have 2 more days left until expiration and the chart is in complete breakout mode. We mentioned how the chart was showing a triple bottom, and we needed to break $59.72 to confirm reversal. Well we did that today! With the close above $61.40, the next resistance point looks to be $66.46 area.

Anyone who has traded or watched Netflix(NFLX) over the past few years, knows it can be very volatile as well as very fickle, meaning some material event or ANALyst downgrade came come in to cause some weakness in the stock. But I highly doubt someone will get in front of this train. Food for thought. 26 of the 30 ANALysts covering the stock have a HOLD or SELL rating. I would say the odds of someone agreeing with CITI and Tilson are better then someone trying to lower an already low target.

We will have more on Netflix(NFLX) over the next few days.

 

10-3-2012

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Another October day, another green open. Whether that stays or not is the question. Seems like every rip has been sold off, and every sell-off has been bought. Today brought the ADP employment numbers which were above expectations. There is still some concerns over Spain and we have the Presidential Debate tonight. Looks like the race became tighter past few days from 5pts to 3pts. Remember, uncertainty is not good for the market.  Something to keep an eye on.

We had some nice plays so far and want to give it up for MIKEY and others who were all over CMG in the chatroom yesterday on the bounce. Plays like that can make your week or month!

RetiredMM also had some nice plays on AAPL PUTS then AAPL CALLS as well as MOS puts. Well done!

Lets keep making some coin!

I did have a DUD with MOS calls at the open...

This morning we have NFLX being reiterated as a buy at CITI with $120 Price Target. The stock is currently $58.70 PM and i think the catalysts are now in place for $60+ this week. Been banging the table since monday so hope you grabbed some of the 57.50s and 60 calls.

FDO was one posted by UPB and spoken about in his week ahead. They reported some good earnings this morning and the stock is up nicely pre-market.

Only watching a few for entry today:

$LNKD continues to look to break out and thing finally gets over $120+ today.

$NFLX will look to take advantage if stock breaks $60

$MON think folks will bid her up, was wrong with MOS so maybe right on this one.

Positions looking at: $LNKD $125s C | $NFLX $62.50 C | $MON $95 OCT 20 C

 

Stocks on watch: PCLN, SINA, BIDU, MLNX, AAPL, CMG, ISRG

 

Lets have a great day folks!!!

- Jimmybob

Netflix(NFLX) on the move?

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The last time we wrote about NetFlix(NFLX) was in July, when we alerted our chatroom to a possible breakout and banked some nice coin on the huge move to the upside. You can read about the profits here and our thoughts here. It's been nearly 3 months, and Netflix(NFLX) has been trading near multi-year lows with bearish bets at all-time highs. As of September 15th, there are 15 million shares short of the 54 million share float, meaning 28% of the shares are short. With no real catalyst until earnings in October, it would seem logical that the stock continues to succumb to the bears, yet the stock has found support around the $53 level. Each time it has bounced over 20% from that level... a level it found itself at last wednesday. Will history repeat itself? Well take a look at the chart below and see that Netflix (NFLX) has formed a 'triple bottom'

The triple bottom can provide a reliable reversal signal : A pattern used in technical analysis to predict the reversal of a prolonged downtrend. The pattern is identified when the price of an asset creates three troughs at nearly the same price level. The third bounce off the support is an indication that buying interest (demand) is outweighing selling interest (supply) and that the trend is in the process of reversing.

Read more: http://www.investopedia.com/terms/t/triplebottom.asp#ixzz286lhTai3

If Netflix(NFLX) breaks the $59.72 resistance, the stock will be in reversal mode. The stock is also in a descending wedge pattern when you put the chart into a weekly view which is also bullish:

 

 

Now all the stock needs is a catalyst to help fuel the rally. The stock got that today as Whitney Tilson touted the stock at the 8th annual Value Investing Congress. Here is a great read on what Tilson had to say.

I almost laughed when I listened to Tilson compare the Netflix(NFLX) story to Amazon(AMZN) back in the day, but the more I thought of it the more it started to almost make sense. International growth is still in it's infancy, and competition seems fierce. Yet what would happen if the future of content is not the local cable companies, but is the providers of the content on a global scale.

The argument is that Tilson feels there is a 10% chance that Netflix(NFLX) is a ten bagger from its current price in the coming years, and he is willing to bet on the story. Whether that happens or not is yet to be seen, but what we do know is Netflix(NFLX) has a history of making option traders some serious gains buying in before the big move.

With a great chart setup, and some added attention, we like Netflix(NFLX) for a nice move over $60 over the next few days.

We currently hold the $57.50 Weekly Calls.

 

8-16 Watchlist Jimmybob

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Yesterday was another somewhat boring day with lackluster market volumes. The market volumes seems to be stealing some of the headlines and has become a focus as dog days of summer are truly starting to take hold. Have a feeling in the next few days there will be a nice 1-2%+ move in the markets. Timing it is always the key!

SINA earnings report last night, where the headline numbers look great, but profits for the rest of the year look weak. Again, that is not always the story with SINA, and folks are usually more concerned about its ability to generate revenue and how they are looking to grow profits in the future. Still have hope for my $60 calls and may add some $55/57.50 at the open if I like what i see.

SHLD reported earnings this morning with EPS in line but a revenue miss. Just like I said yesterday, SHLD rallied on gigantic volume into the close and hit a high of 57.48(i said it would hit $57). Of course my order did not fill to sell the calls. Hard to figure what SHLD will do today, but have a feeling it continues it's ascent into the 60s.

NFLX continued its move higher, albeit a little slower on Wednesday. Chart still showing a reversal with plenty of room to move. Hopefully NFLX breaks $65 and the 67.50 calls can go from red to green.

I will be doing a LIVE Q and A session tonight at 7pm. I will have the link posted in the live chat room later this afternoon.

I will be out in the morning but once again you can email at optionmillionaires@gmail.com for any questions.

Will likely not be adding any positions for the 2k mirror account today unless I see something very compelling. Also, want to make sure the other 2 positions are closed.

Mirror followers check twitter for updates throughout the day.

Have a Great THURSDAY!

 

 

NFLX $75 Calls $20 into $10,350

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NFLX huge move the last few days has made some people a lot of money. We alerted the $80 strike this week at $.20, they hit $5.55 today. But it gets better. The $75 strike was as low as $.02 and hit $10.35 today. That amounts to $20 into $10,350!

Next week we have earnings. Should provide for more impressive opportunities.