Netflix (NFLX) Offering Possible 63.93% Return Over the Next 19 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $427.50 short call and a strike $432.50 long call offers a potential 63.93% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $427.50 by expiration. The full premium credit of $1.95 would be kept by the premium seller. The risk of $3.05 would be incurred if the stock rose above the $432.50 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 37.13 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

France's Orange won't carry Netflix on set-top boxes at first -CEO
Tue, 29 Jul 2014 06:24:46 GMT

With PlayStation network, Sony goes back to the future in search of revival
Tue, 29 Jul 2014 03:47:22 GMT

Will Netflix (NFLX) Stock Be Helped By The Possibility Of ‘Seinfeld' On Demand?
Mon, 28 Jul 2014 18:52:00 GMT

Jerry Seinfeld Alludes to Netflix Deal for ‘Seinfeld’
Mon, 28 Jul 2014 18:24:36 GMT

Will Netflix Buy the Streaming Rights to Seinfeld ?
Mon, 28 Jul 2014 10:01:30 GMT

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