Netflix Offering Possible 57.48% Return Over the Next 37 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 57.48% return on risk over the next 37 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 $3.65 would be kept by the premium seller. The risk of $6.35 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 below 20 which suggests that the stock is in oversold territory.

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

Why End of Net Neutrality Is a Game Changer For Netflix
Thu, 16 Jan 2014 23:32:34 GMT
Motley Fool – The end of net neutrality could force Netflix and other Internet TV providers to change their pricing models. Can they avoid losing customers?

Netflix Continues Its Awards March
Thu, 16 Jan 2014 20:20:41 GMT
The Wall Street Journal – Nominations for the Academy Awards were announced this morning, and they included a familiar name on the awards circuit of late: Netflix.

Last year's darlings are 2014's dogs
Thu, 16 Jan 2014 18:12:00 GMT
CNNMoney.com – The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any …

Trading the S&P into the close
Thu, 16 Jan 2014 18:10:00 GMT
CNBC – Where will stocks close the day? The market's next move, with CNBC's Jackie DeAngelis and the Futures Now Traders.

Time Warner Cable, Charter are stuck in a prisoner's dilemma
Thu, 16 Jan 2014 16:48:00 GMT
Fortune – By Lauren Silva Laughlin FORTUNE — Charter Communications and Time Warner Cable are stuck in a prisoner's dilemma. Charter looks to be the more aggressive prisoner, having made a $61.3 billion offer for …

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