Netflix (NFLX) Offering Possible 61.29% Return Over the Next 31 Calendar Days

Netflix's most recent trend suggests a bullish bias. One trading opportunity on Netflix is a Bull Put Spread using a strike $290.00 short put and a strike $280.00 long put offers a potential 61.29% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $290.00 by expiration. The full premium credit of $3.80 would be kept by the premium seller. The risk of $6.20 would be incurred if the stock dropped below the $280.00 long put strike price.

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

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

The RSI indicator is at 61.85 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

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LATEST NEWS for Netflix

Could Netflix Survive on Just Its Own Original Content?
Sun, 17 Nov 2019 13:27:00 +0000
Netflix says that viewers shell out for original shows like Stranger Things and Orange is the New Black — but production costs have ballooned roughly 30% since last year, which has many investors spooked.

Before you sign up for Disney+, use this calculator to add up the ‘true’ cost of your streaming services
Sat, 16 Nov 2019 19:50:00 +0000
Netflix for $12.99, Disney+ for $70 a year, Hulu with no ads for $11.99, and add on HBO for $14.99… wait, how much is this all costing? Welcome to the next phase of the streaming wars.

Walt Disney Shares Pop on Big Subscriber Numbers for Disney+
Sat, 16 Nov 2019 01:00:00 +0000
The Mouse House’s new streaming service picks up 10 million subscribers on its first day. That’s enough to drive the stock up, push the Dow to a record, and send Netflix lower.

Disney+ Signed Up 10 Million Users, but Some Seem to Be Looking for an Exit
Fri, 15 Nov 2019 22:21:00 +0000
Can Disney+ “hold onto the huge number of early subscribers and continue to add new subscribers?” asks LightShed Partners analyst Rich Greenfield.

Roku Says It Won’t Be Long Before Streaming Revenue Eclipses TV
Fri, 15 Nov 2019 21:04:59 +0000
(Bloomberg) — Streaming video has been one of the biggest growth stories of the past several years, but even with all the attention that has been paid to the space, the industry is nowhere near full maturity, according to an executive at streaming-platform Roku Inc.“In the long run, the total addressable market for streaming video is all TV money, period,” said Scott Rosenberg, a senior vice president and general manager of Roku’s platform business. Over-the-top (OTT) streaming “lets advertisers do things that they’ve gotten used to in digital but which hasn’t been possible on TV,” such as individually targeting consumers based on user-specific data.Rosenberg compared the industry, specifically streaming-related advertising, to the early days of smartphones, when usage far outpaced how much advertisers focused on them. He cited a study from Magna that suggested 29% of TV viewing was happening outside the traditional model, although only 3% of TV ad budgets were being allocated to streaming services.That imbalance will correct “in a pretty accelerated fashion over the next two or three years,” he said in a phone interview. “Marketers are starting to move their money, and once it begins to happen apace, I think we’ll see a significant outflow.”It will likely take a few years for streaming ad revenue to surpass linear TV, he said, though the trend is accelerating. According to Bloomberg Intelligence, OTT ad revenue is expected to grow to $9 billion by 2023, compared with $4 billion in 2019. The TV advertising market is estimated at around $70 billion.While much of the focus on the sector has been on the fight for audiences between content providers — both Apple and Walt Disney have recently launched new services, with others on the way, including HBO Max next spring — Roku has benefited by being a portal to these services, rather than a competitor. Last month, Apple announced that its TV+ app would be available on Roku’s platform, news that was notable as the iPhone maker offers its own streaming hardware.The agreement “validates [Roku’s] dominant role as an aggregator,” and “the content-agnostic nature of its platform will allow more deals with streaming services,” Bloomberg Intelligence wrote.Investors have rewarded Roku’s position within the ecosystem. Shares are up more than 400% thus far this year, making it the biggest gainer in the Russell 1000 index by far. Netflix Inc. is up about 10% thus far in 2019, while Disney has risen 32%.Earlier this month, RBC Capital Markets wrote that Roku was “one of the best plays on ad-supported OTT, with the company being one of the best positioned to take share of the very large, underpenetrated” $70 billion TV advertising spending opportunityRoku posted its sixth straight advance on Friday and has risen more than 30% over that stretch. The gains have coincided with the launch of Disney+, as well as bullish commentary from Bank of America, which on Friday raised its price target and wrote that Roku’s Black Friday discounts are setting it up for “outsized” account growth in the fourth quarter.While the stock struggled in September because of concerns about competition for streaming hardware, Roku’s platform business accounts for a growing percentage of its overall revenue. According to data compiled by Bloomberg, the division comprised nearly 70% of the company’s third-quarter revenue, while the rest came from its players business. Over all of 2018, platforms accounted for just 56.1% of revenue.Roku’s Rosenberg told Bloomberg that the company continued to view linear TV as its biggest competition for near-term growth. “We’re trying to take OTT advertising from a $5 billion market to a market that’s $20, $30, or even $50 billion. However, cord-cutters are leaving paid-TV in droves, and user engagement is on our side. When I started here, there were no networks doing streaming, but now Disney is all-in on a major service. There’s been a series of tipping points for the industry.”He added that he was planning to spend the weekend watching “The Mandalorian,” a new series set in the “Star Wars” universe, now streaming on Disney+.To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Tatiana DarieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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