Netflix (NFLX) Offering Possible 56.74% Return Over the Next 4 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $103.00 short call and a strike $108.00 long call offers a potential 56.74% return on risk over the next 4 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $103.00 by expiration. The full premium credit of $1.81 would be kept by the premium seller. The risk of $3.19 would be incurred if the stock rose above the $108.00 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 65.24 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

5 Things You Must Know Before the Market Opens Monday
Mon, 17 Oct 2016 09:56:00 GMT

Dow futures fall as stocks seen ‘struggling to sustain themselves’
Mon, 17 Oct 2016 09:52:28 GMT

Three things to watch in Netflix's earnings
Mon, 17 Oct 2016 09:06:00 GMT

[$$] Netflix Isn’t Headed Toward a Happy Ending
Mon, 17 Oct 2016 04:05:34 GMT
The Wall Street Journal – Netflix is contending with a slowdown in net subscriber growth, rising churn and higher competition ahead of Monday’s third-quarter earnings report.

The Only Two Streaming TV Options You Need: Netflix, Hulu
Mon, 17 Oct 2016 04:01:00 GMT

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