Netflix (NFLX) Offering Possible 56.25% Return Over the Next 38 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $455.00 short call and a strike $465.00 long call offers a potential 56.25% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $455.00 by expiration. The full premium credit of $3.60 would be kept by the premium seller. The risk of $6.40 would be incurred if the stock rose above the $465.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Netflix is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Netflix is bearish.

The RSI indicator is at 52.5 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Netflix

Netflix (NFLX) Earnings Report: Q3 2014 Conference Call Transcript
Thu, 16 Oct 2014 07:13:00 GMT

BSkyB Sales Rise: How Well-Positioned Are They?
Thu, 16 Oct 2014 06:26:52 GMT

Netflix Shares Flung Over Subscriber Woes
Thu, 16 Oct 2014 05:55:18 GMT

[$$] Netflix Shares Plunge as Growth Disappoints
Thu, 16 Oct 2014 05:19:17 GMT
The Wall Street Journal – Netflix lost a quarter of its market value after reporting a disappointing number of new users in the third quarter—just as it prepares to face a new challenge from HBO.

[$$] Overheard: Netflix Comes Up Short
Thu, 16 Oct 2014 05:17:43 GMT
The Wall Street Journal – Overheard: Netflix Comes Up Short

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