TopOptionAlert
Oct 22, 9:21 AM
$NFLX NOV20 63P · still actionable
Zone:
$64.58 to
$65.50
Invalidation: close over
$67.12
Objectives:
$61.50, then
$58
The math: down 5.4% to the first objective and 10.8% to the second, against 3.2% risk on the invalidation, better than 3 to 1 to the second
Dear friend, picture a company that beat profit and still lost the room because the story for the next few months sounded softer. That is this swing setup to the downside. Netflix closed at 65.04 dollars on about 101 million shares, well above its usual pace, and it finished near the low after slipping under the old yearly low, which means sellers were committed, not just nervous. The cut to the ad outlook gives buyers a plain reason to wait, so the path of least resistance stays down until price proves otherwise.
P.S. Watch 64.10 dollars first. That was the low on Wednesday, and a close under it would show sellers are still pressing.
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