|
Netflix(NFLX) Pulls Back After Earnings, Is It a Buy?
Recent hikes in the price target for Netflix stock among analysts suggest there is further upside. Stifel Nicolaus has raised their target from $345 from $325 and Raymond James increased targets from $290 to $330.
____________ advertisment ______________
Man Up $1 Million With One Tiny .10 Pot Stock Makes NEW Shocking Announcement
He was one of the few who predicted pot stocks would explode in value and now he's making another shocking Pot Stock prediction. HINT: He just found "5 NEW" pot stocks just like the one that made him a millionaire. And he's revealing them at a special event on April 26th at 8pm ET.
Click here for more details and to reserve your spot.
______________________________________
Technicals
NFLX has pulled back since its earnings report but price action over the past few days suggest some exhaustion as a doji candlestick pattern has printed and the stock price has edged higher since. This pattern was established at the 50-day moving average which remains a key indicator to the downside. Further support is seen slightly below it in the form of a rising trendline.
*source Tradingview.com
If you agree there's further upside ahead for NFLX, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.
Buy To Open NFLX 01JUN18 307.5 Puts (NFLX180601P307.5)
Sell To Open NFLX 01JUN18 310 Puts (NFLX180601P310) for a credit of $1.08 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when NFLX was trading near $312. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $105.50 and your broker would charge a $250 maintenance fee, making your investment $144.50 ($250 – $105.50). If NFLX closes at any price above $310.00 on June 1, both options would expire worthless, and your return on the spread would be 73% (833% annualized).
____________ advertisment ______________
DISCOVER HOW TO COLLECT $10,670 OR MORE IN FREE CRYPTO
Inside this guide, you'll learn...
* How to collect up to $10,670 in free crypto
* A simple trick you can use to purchase tokens at a 99% discount
* How to find cryptos that could turn every small crypto investment of $140 into a $5,430-a-year income stream
* How to unlock $1,932 in hidden crypto in your wallet (if you own crypto)
* And more...
(Only 500 FREE copies are available today. Find out how to claim yours.)
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
Give Me 9 Minutes a Week and I Guarantee You $67,548 a Year
Master trader Jim Fink trades the market for extra cash... and averages $185 per day. $185.06 to be exact. That adds up to $67,548 per year, and if you follow his strategy, you can do the same thing yourself. Why not? All it takes is nine minutes a week. And you don't have to invest a dime up front.
Go here to see if this $67,548-a-year system is for you.
______________________________________
Any questions? I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts. seth@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
I look forward to having you on board, and to prospering with you.
Terry
|
