Netflix (NFLX) Offering Possible 61.29% Return Over the Next 23 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $382.50 short call and a strike $387.50 long call offers a potential 61.29% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $382.50 by expiration. The full premium credit of $1.90 would be kept by the premium seller. The risk of $3.10 would be incurred if the stock rose above the $387.50 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 27.92 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

LinkedIn handed in an encouraging Q3 report: Expert
Fri, 31 Oct 2014 03:21:00 GMT

Netflix and Gilead Will See More Gains, Says Thornburg Value Manager
Thu, 30 Oct 2014 21:54:00 GMT

Canadian broadcaster Bell to launch service to rival Netflix, Shomi
Thu, 30 Oct 2014 19:52:37 GMT

Netflix is coming to BT TV YouView boxes
Thu, 30 Oct 2014 17:55:00 GMT

Haunted October stocks: URBN, NFLX, BHI & FSLR
Thu, 30 Oct 2014 16:51:00 GMT

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