TopOptionAlert
Oct 25, 3:31 AM
$NFLX NOV20 69C · still actionable
Zone:
$65.39 to
$66.31
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 2 to 1 to the first and better than 4 to 1 to the second.
Dear friend, picture a good shop that just reported a better quarter than expected and still went on sale. Netflix earned 87 cents a share against an 82 cent estimate on October 20, yet Friday closed at 65.85 after falling more than 9 percent in five days, just above its low of the past year at 64.10. This swing bets the panic has run its course and the walk back starts toward 70, with room toward 75 if buyers keep showing up the way they did after past selloffs.
P.S. Watch 64.10 first, since a close under it breaks the whole idea.
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