TopOptionAlert
Oct 24, 6:42 AM
$NFLX NOV20 68C · actionable here
Zone:
$65.40 to
$66.30
Invalidation: close under
$64
Objectives:
$70, then
$75
The math: up 6.3% to the first objective and 13.9% to the second, against 2.8% risk on the invalidation, better than 4 to 1 to the second.
Dear reader, this is a swing, and the setup is simple. Netflix beat earnings and widened its margin, yet the stock got marked down and now sits 3 percent above its 52 week low. When a good quarter gets a panicked price, the price is usually the thing that is wrong. Profits are up, the company is buying back its own stock at a record pace, and the sellers may have shown all they have. You are buying a leader off its knees while it still stands above the low that was supposed to break.
P.S. Netflix just bought back
$4.8 billion of its own stock in one quarter, a company record, and
$22.3 billion of the authorization is still there.
1 replies