The Post-Earnings Dip in Netflix (NFLX) Offers a Buy Opportunity
Several analysts have become increasingly bullish on Netflix after their most recent earnings report, here are two of them - 3 Reasons Why Netflix (NFLX) Is a Great Growth Stock and Netflix: A High-Growth Utility Despite Its High Valuation.
____________ advertisment ______________
No. 1 Stock for America's Revival
America's $51 trillion recovery will be of unheard magnitude.
Only it's not from a single thing the government is doing. Or even from big corporations.
Instead, it's due to one tiny pioneering American company.
You won't believe what this made-in-America device does.
It's poised to create more millionaires than pot stocks, cryptos and Big Tech - combined!
Click here for the full story.
______________________________________
Technicals
Netflix is one of the few well-known companies that has broken to fresh record highs after the Coronavirus inspired drop in March. In the process of doing so, the stock has broken above an important price level at $385 that was a hurdle on three distinct attempts between late 2018 and March of this year. This technical breakout could lead to notable gains for the stock making the current pullback a buying opportunity. Buyers have already shown signs of stepping in at the 20-day moving average, further support comes at the breakout point of $385.
*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 12JUN20 410 Puts (NFLX200612P410)
Sell To Open NFLX 12JUN20 415 Puts (NFLX200612P415) for a credit of $2.40 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when NFLX was trading near $415. 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 $1.30 per spread. Each contract would then yield $238.70 and your broker would charge a $500 maintenance fee, making your investment $261.30 ($500 – $238.70). If NFLX closes at any price above $415 on June 12, both options would expire worthless, and your return on the spread would be 91% (1038% annualized).
____________ advertisment ______________
Florida Trader Hacks Citigroup Scanner For Massive 24 Hour Windfalls
Up to 93.2% accuracy trading before the open?
1110% on GES, 1135% on MAT, 1360% on KHC from the all-new "Blitz Tracker."
Lance Ippolito quit his fund management job to trade with exclusive information...
You could access dark market insights that have led to 24 Hour Trades exploding as much as 1,360%+
And they're showing no signs of slowing down.
Lance says there's even ONE specific trade on his radar now.
Clicking here could change your life.
______________________________________
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 ______________
America's #1 Stock Picker Reveals Next 1,000% Winners (FREE)
He's found 40 1,000% or higher stock market winners. He beat 650 of the world's most famous investors (including Bill Ackman and David Einhorn) in a contest.
And today he's revealing his next potential 1,000% winners for free, right here.
______________________________________
Any questions? Email Colin@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?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you for our Premium Service package ($119.95 value plus an extra 4 months of our Premium Service, valued at another $190.80). You get $300.65 worth of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
|
