Netflix Offering Possible 41.84% Return Over the Next 17 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $325.00 short call and a strike $335.00 long call offers a potential 41.84% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $325.00 by expiration. The full premium credit of $2.95 would be kept by the premium seller. The risk of $7.05 would be incurred if the stock rose above the $335.00 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 54.93 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

Can Verizon Turn Intel's Failed TV Service Into a Netflix Killer?
Wed, 30 Oct 2013 21:10:08 GMT
Motley Fool – Intel is about to give up on its ill-fated adventures in digital TV services, perhaps handing the project over to Verizon. Did Netflix just dodge a bullet, or will Verizon's new assets create a Netflix-killer …

Why Netflix Is A Solid Buy
Wed, 30 Oct 2013 20:35:26 GMT
Seeking Alpha – Our previous research on Netflix ( NFLX ) was based on the deal struck with Virgin Media ( VMED ), which was acquired by Liberty Global ( LBTYA ), for installing the Netflix app on TiVo's set top box in …

Comcast Q3 Mixed; Downplays Talk Of Any Netflix Pact
Wed, 30 Oct 2013 20:31:00 GMT
Investor's Business Daily – Comcast Q3 Mixed; Downplays Talk Of Any Netflix Pact

What's The Deal With Netflix?
Wed, 30 Oct 2013 20:15:18 GMT
Motley Fool – Why is Netflix down so much after blowing past earnings estimates?

Tesla, Netflix & Micron Tech up 100% ytd
Wed, 30 Oct 2013 19:06:00 GMT
CNBC – CNBC's Seema Mody breaks down the biggest movers in the Nasdaq including Gilead Sciences and Baidu.

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