Netflix (NFLX) Offering Possible 44.93% Return Over the Next 9 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $435.00 short call and a strike $440.00 long call offers a potential 44.93% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $435.00 by expiration. The full premium credit of $1.55 would be kept by the premium seller. The risk of $3.45 would be incurred if the stock rose above the $440.00 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 48.44 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

Amazon Prime price increase takes pressure off Netflix
Thu, 13 Mar 2014 23:03:00 GMT

Amazon Prime price hike could add $150 million to bottom line: Pro
Thu, 13 Mar 2014 21:39:00 GMT

Amazon beyond the price hike
Thu, 13 Mar 2014 18:11:00 GMT

Netflix Thrives While Big Media Companies Fight The Future
Thu, 13 Mar 2014 18:09:40 GMT

Netflix revives Veggie Tales, Puss in Boots characters for kids exclusives
Thu, 13 Mar 2014 17:35:48 GMT

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