TopOptionAlert
Oct 20, 4:52 AM
$NFLX NOV20 72C · still actionable
Zone:
$69.35 to
$70.35
Invalidation: close under
$68.50
Objectives:
$74, then
$76.50
The math: up 5.9% to the first objective and 9.5% to the second, against 1.9% risk on the invalidation, about 4.9 to 1 to the second.
Dear friend, picture a good business that has had a rough year on price alone, down about 25% this year while it still grows sales in double digits. That is the swing setup here into earnings tomorrow, October 20, after the close. Expectations sit low, options are pricing about a 9.6% move, and what that means is the worry is already in the price, so a decent print has room to surprise people who gave up. Hold the low from today near
$69 and the path back toward those prior levels stays open.
P.S. Watch the
$71.22 area first. A close above it says buyers finally stepped in ahead of the print.
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