Netflix Offering Possible 52.67% Return Over the Next 39 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $340.00 short call and a strike $350.00 long call offers a potential 52.67% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $340.00 by expiration. The full premium credit of $3.45 would be kept by the premium seller. The risk of $6.55 would be incurred if the stock rose above the $350.00 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 51.86 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

Netflix could drop 50%, Barron's says
Tue, 12 Nov 2013 22:46:25 GMT
theflyonthewall.com – Netflix looks “grossly overvalued” and could drop 50%, Barron's argues in its Ahead of the Crowd column.

Can Hulu Team Up with TV Providers to Outplay Netflix?
Tue, 12 Nov 2013 21:47:05 GMT
Wall St. Cheat Sheet – Hulu is looking to expand, and its executives have been in preliminary discussions with a number of TV providers with that goal in mind.

‘Cloverfield' writer signs on for Netflix's Daredevil series
Tue, 12 Nov 2013 21:26:32 GMT
The Verge – Noted writer-producer Drew Goddard has signed on to write Netflix's upcoming Daredevil series, according to a new report from The Wrap. Neither Marvel nor Goddard's reps would confirm the report, but if true, it would give new reason for fans to be excited about the series, which is set to premiere in 2014. Goddard has also worked closely with Marvel TV honcho Joss Whedon on both Angel and Buffy, adding credence to the reports As a result, Goddard adds important credibility to Netflix's Daredevil project, as the company continues to seek talent for its other Marvel-based series on Luke Cage, Jessica Jones, Iron Fist and The Defenders.

Stocks Retreat From Record Highs; Dish Network Climbs on Earnings, Tesla Hits Skids Again
Tue, 12 Nov 2013 21:02:30 GMT

Disney and Netflix Are Joining Together at Last
Tue, 12 Nov 2013 21:02:02 GMT
Motley Fool – Some say this day would never come, yet Walt Disney & Netflix are finally joining forces in an unprecedented deal which is sure to affect both companies for years to come.

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