Netflix (NFLX) Offering Possible 42.86% Return Over the Next 3 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $302.50 short call and a strike $307.50 long call offers a potential 42.86% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $302.50 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $3.50 would be incurred if the stock rose above the $307.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Netflix is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Netflix is bearish.

The RSI indicator is at 37.95 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Netflix

U.K.’s Cineworld to Buy Canada’s Cineplex for $1.64 Billion
Mon, 16 Dec 2019 09:30:51 +0000
(Bloomberg) — Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Britain’s Cineworld Group Plc plans to buy Canada’s Cineplex Inc. for C$2.15 billion ($1.64 billion), extending a consolidation push across the movie-theater industry.Cineworld will pay C$34 a share for Cineplex, a 42% premium to the Canadian company’s closing price on Friday. The deal will be funded by $2.3 billion of loans.Shares of Cineworld were down 3.3% as of 9:11 a.m. in London, paring an earlier loss of as much as 8.6%, the biggest intraday drop in about two years. Analysts at Citigroup Inc. said that while the deal makes sense, Cineworld’s debt will remain high afterward.Movie-theater operators have been combining to squeeze costs so they can afford facility upgrades and counter the risk that on-demand services such as Netflix Inc. will hit attendance. Bigger chains can also have a stronger bargaining position in negotiation with studio giants such as Walt Disney Co., which have also been growing through tie-ups.“The deal is being done first of all to improve the experience of the public and having more customers and second to get efficiencies in other costs,” Mooky Greidinger, chief executive officer of Cineworld, said in an interview. “We saw in the last couple of years a lot of consolidation deals in the studio side,” adding pressure on cinema chains to find savings.Greidinger said Netflix is “not a direct competition to us” as “they are still TV movies, in my eyes.”However, other analysts have pointed out that the streaming services coming from Disney and AT&T Inc.’s HBO will add to the pressure on theater chain.Weaker 2020?“Top theater chains are gearing up for a challenging 2020 box-office year, as a weaker slate and surge in streaming services could mean another down year for the industry,” Amine Bensaid, an analyst at Bloomberg Intelligence, said in a research note last month. “The studio model could contend with increased pressure if new direct-to-consumer services such as Disney+ and HBO Max follow in Netflix’s footsteps by developing more films for their digital services.”The takeover of Cineplex, which operates 165 movie theaters across Canada, continues a push by London-based Cineworld into North America. It follows the company’s s $3.6-billion purchase of American operator Regal Entertainment Group in 2018, targeted at broadening its growth opportunities beyond the U.K. and Ireland. The British group now derives almost three-quarters of its revenues from North America.“The strategic rationale for the deal is relatively straight forward,” Natasha Brilliant, an analyst at Citigroup, said in a research note. “The company’s leverage will remain high given the deal will be debt financed, and we suspect this transaction will have taken the market by surprise.”Were the deal to have closed at the end of this year, the combined company would have a ratio of net debt to earnings before interest, taxation, depreciation and amortization of four times. Cineworld targets leverage to drop to three times by the end of 2021.The buyer was advised by Bank of America Corp., HSBC Holdings Plc and Golman Sachs Group Inc., which have all committed to provide the financing. Cineplex was advised by the Bank of Nova Scotia.(Adds CEO comments from fifth paragraph, updates shares.)\–With assistance from Joe Easton and Lisa Pham.To contact the reporters on this story: Jennifer Ryan in London at jryan13@bloomberg.net;Thomas Seal in London at tseal@bloomberg.netTo contact the editor responsible for this story: Rebecca Penty at rpenty@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Bulls And Bears Of The Week: Disney, Macy's, Netflix, Tesla And More
Sat, 14 Dec 2019 18:48:18 +0000
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included the electric vehicle leader and the result of a re-merger. Bearish calls also included entertainment …

Barron's Picks And Pans: Charles Schwab, Disney, Sprint, Netflix And More
Sat, 14 Dec 2019 18:36:50 +0000
This weekend's Barron's cover story looks at what's ahead for the markets in 2020. Other featured articles offer 10 best picks for 2020 and take a second look at “buy low, sell high.” Also, the …

Investing In Stocks: Timely Tips From Rudolph, Frosty And Scrooge
Sat, 14 Dec 2019 18:25:10 +0000
Using Nvidia, Netflix and Facebook, see timely tips on investing in stocks hidden within the holiday classics featuring Rudolph, Frosty and Scrooge.

Netflix could lose 4 million U.S. subscribers next year, warns analyst
Sat, 14 Dec 2019 17:53:00 +0000
Netflix Inc. historically has been averse to advertisements, but the changing competitive landscape in streaming likely warrants a change in strategy, according to an analyst.

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