Netflix (NFLX) Offering Possible 53.85% Return Over the Next 8 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $442.50 short call and a strike $447.50 long call offers a potential 53.85% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $442.50 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $3.25 would be incurred if the stock rose above the $447.50 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 49.89 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

U.S. web companies press demands for net neutrality with FCC
Mon, 14 Jul 2014 10:28:50 GMT

Sony Explains Why PS4 Hasn't Caught Fire In Japan
Sun, 13 Jul 2014 15:08:00 GMT

Verizon Accuses Netflix of Misleading Public
Sat, 12 Jul 2014 14:00:17 GMT
24/7 Wall St. – Netflix has been, according to its management, the champion of an open and free Internet. Without a fast Internet connection for everyone, its streaming movies will freeze and buffer until they are unwatchable….

Why HBO Dominated the 2014 Emmy Nominations
Fri, 11 Jul 2014 23:09:09 GMT

Netflix: Expansion In Europe Will Enhance Returns
Fri, 11 Jul 2014 22:38:30 GMT

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