Netflix Inc: 5 Trade Ideas

Published 08/04/2014, 07:58 AM

Here is your Bonus Idea with links to the full Top Ten:

Netflix Inc (NASDAQ:NFLX)
NFLX Daily Chart

Netflix has pulled back from a top at 475, creating a potential Cup and Handle formation. The target higher would take it to 650. The RSI has leveled after pulling back, while holding in the bullish zone with a MACD that is leveling and about to cross positive. A move over 437.50 would solidify the pattern and under 415 negates it for now.

Trade Idea 1: Buy the stock now or on a move over 437.50 with a stop at 420.

Trade Idea 2: Buy the August 430/440 Call Spreads (offered at $3.85 late Friday).

Trade Idea 3: Buy the August 430/400 1×2 call Spreads (25 cent credit).

Trade Idea 4: Buy the August/September 440 Call Calendar ($9.35) and sell the August 22 Expiry/September 385 Put Calendar ($3.05 credit).

Trade Idea 5: Buy the October 385/430 bullish Risk Reversal ($13.70) and sell the August 440 Calls ($4.05). As the August Calls Expire sell upside September Calls.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

 

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