Big boys bought back the options they wrote now that IV has dropped.
Watch the stock retrace back below today's low in the next few days.
It was hard competing with $8/month, but $16/month has enough meat that even Walmart is now retrying.
Amazon, Hulu, etc. now have enough incentive now that NFLX did all the hard work.
bought some 260 and 265 puts today at 2 and 330 today
just a nibble. not sure if it will go back up to 272 or not
tomorrow i will probably buy more,especially if there is no gap down and the market is weak.
wish i though of the short cover rally this morning. Could have made a killing on the 15 dollar bounce.
The premium was incredibly strong pre-earnings. Got my 190 Sept's at .73 and they opened at 1.10 with nearly a $25 drop. Finally settled around .80. The juice is gone but I'm going to hold mine through August. I see a continuous stream of negativity and bad news, short term.
Okay, look at option interest on level II and tell me if you don't understand the play.
I sold the straddle myself pre-earning release and closed it before going short now.
AH did scare me yesterday, but I got clarity before the market opened today.
The premiums were fat and they went for it.
Now, the orderly exit will take place.
The projected new sub for Q3 is a net of 190,000, which is pathetic. Even Hulu will pull bigger numbers than that.
More pressure from Hulu buyer announcement, debt ceiling chatters, revamped competition... etc.
Only weak shorts can't keep this up.