Sell some covered calls against your position... try to cut your losses... go out about 2-3 months and around the $175 range.... if you don't lose the shares, repeat the procedure and try to reduce your losses... good luck...
Cut your losses, as this could get much much worse. Sorry. You bought a bad one here.
You might wish to do a conversion to a Roth for just these shares. Then wait for a pop and sell...and yes, sell covered calls. But then if it tanks farther....recharacterize back to the IRA. At least this way, you will not face tax on the appreciation...if any.
This is really not the place to get sound advice. The first reply to your post called you an idiot, if that's any measure of the quality of some people on this board. Many of the people here are short-term traders, not LT investors, so their comments are short-term oriented. Here's my 2 cents: So you bought near the most recent top, and since then a bunch of news has come out that has driven NFLX lower. What is your investment timeframe? If you were using IRA money, I'm guessing you have awhile?? And what (or who) convinced you to buy NFLX at $240 in the first place? Hopefully your portfolio is diversified and you did not put all your eggs in this basket, as that would be ridiculously risky (if you did, I personally would liquidate a bunch of it, take your 20% hit, and invest the $$ elsewhere). Recent news would suggest NFLX is facing some headwinds in the form of competition. The proof will be in the pudding to see if they start losing market share, which would be indicated by declining revs and earnings in the coming year or two...but just like the Facebook-Warner Bros. deal, I think they are pursuing something similar that we'll hear about soon. Also, as this board can be very negative as there are a lot shorts here, know that some investment newsletters, like Motley Fool Stock Advisor, are still big fans of NFLX as a long-term core holding. If that is why you invested in NFLX, you might pay them a visit...the community on the NFLX board there are very helpful for someone in your position. Only time will tell who's right.
Disclosure: I went long with a small position (less than 0.25% of my portfolio) at $204.55 and am thinking of adding to that position, but waiting for now to see if the knife keeps falling.
I commend you for taking time out of your day to provide this gentleman some insight.
It is difficult for the long term investor to resist these momentum stocks, because they can make a huge difference in a portfolios growth, but the edge cuts both ways.
Placing any retirement eggs in a stock with an 70+ P/E is awfully hard to justify, but there is value in the lessons learned -- of not the security purchased.
I hate to see folks suffer, but the fundamentals of this one screamed for a huge correction.
Content costs, competition, and a lack of any discernable intellectual property places this one on a cliff. Just don't see how someone in at the top can come out unscathed. Selling covered calls might soften the blow, but there will be pain.