high chance of market going red today which will pull nflx back below $110. options expiration tomorrow. very doable. plus market down 7% from last week and nflx only down 5%, nflx will go lower.
very likely to close above 114 today. anything is possible. but they will most likely pin it at 115 for the expiration
200dma at 104.8. will bounce off of that, may dip as low as 104.4. OK to buy the 104 and 105 calls. Too many puts still in the money. Market not in free fall yet, still a controlled decent and it's not based on the US economy. Stay close to this trade, but should be very profitable. May close the week between 107-108
expect the push higher this week above $700. Once it breaks that, $715 is a given. possibly $730. So if it breaks $700, buy the 705's, once above $705, buy the $720 puts as protection. That way you lock in the profits on the $705's by utilizing the $720 puts.
Example: buy the $705's for $3 (5 contracts), above $705, they will be about $5, Buy the $720's for say, $16 (1 contract), if the stock continues to go up, your 705's will keep going. So if GOOGL goes to $715, your calls will be worth $10.50 or $5,250 and your $720's will drop to $600, net: $5850. Cost $3,100, profit $2,750 - commish. Max loss is $1,600. If it drops back to $699, then you can sell $720's for $2100 for a lost of $1,000.
This is a good risk reward trade. Stay away from the $700 contracts, they could pin it at $700 and lose it all. Go for $5-20 in the money for easy return.
today was such an easy short at the open. Bought the 29.50's for .38, sold for 1.01. Picked up some 28s at the close for .11 Should be able to sell for at least .40 tomorrow, shooting for $.65 or better.
This market is not going to get off the ground until we dip 10%, 10% will put the DOW at 16,700ish. Very doable. only 700 points away, thats 2 - 3 big down days. That would satisfy a normal correction without going into bear territory. Twitter has support at $27 which could easily be tested tomorrow. Look for easy money, ride the market down and look for those support levels on the DOW, 17000 and 16700