Netflix (NFLX) Offering Possible 47.06% Return Over the Next 20 Calendar Days

Netflix's most recent trend suggests a bullish bias. One trading opportunity on Netflix is a Bull Put Spread using a strike $352.50 short put and a strike $347.50 long put offers a potential 47.06% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $352.50 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $3.40 would be incurred if the stock dropped below the $347.50 long put strike price.

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

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

The RSI indicator is at 61.8 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

Baidu Shares Jump After ‘Netflix of China' Service iQIYI Drives Q4 Revenue Gains
Fri, 22 Feb 2019 10:13:00 +0000
shares were indicated higher in pre-market trading Friday after the China-focused search engine operator posted stronger-than-expected fourth quarter earnings and held to its near-term revenue guidance despite the broader slowdown in the world's second-largest economy. Baidu said adjusted earnings for the three months ending in December were tabbed at 13.18 yuan per share ($1.96), based on its American depositary share listing, well ahead of the 11.83 estimate compiled by Refinitiv. Looking into 2019, Baidu said it sees first quarter revenues in the region of 23.5 billion to 24.7 billion, an 18% increase at the top end and a figure that won't be affected by company divestments and essentially matches Street forecasts.

Amazon Is Taking a Play Out of Netflix's Book for Prime Video
Fri, 22 Feb 2019 00:55:00 +0000
New head of Amazon Studios Jennifer Salke recently outlined plans to add more films to Prime Video.

FANG bites the dust, is the trade in trouble
Thu, 21 Feb 2019 22:44:06 +0000
Nasdaq is on track to snap its winning streak. Where's the FANG rally? With CNBC's Melissa Lee and the Fast Money traders, Pete Najarian, Chris Verrone, Dan Nathan and Guy Adami.

Haunting Of Hill House Season 2 Is Coming And Here's What It's About
Thu, 21 Feb 2019 20:49:10 +0000
While the story of the Crane family on Netflix's The Haunting of Hill House–GameSpot's favorite show of 2018–may be over, the show will go on. Netflix has announced a second season of what they're calling an "anthology series," as well as the scary story it's going to tackle next.

The Haunting of Bly Manor is what Season 2 will be known as, taking inspiration from The Turn of the Screw, a horror novella by Henry James. The work from 1898 tells the story of a governess watching over two orphans in a massive and creepy old mansion. In what should come as a surprise to nobody who saw the first season of the show, this house is also believed to be haunted. However, just as Hill House examined whether members of the Crane family suffered from mental illness or were being tormented by supernatural entities, the woman in The Turn of the Screw also wonders if she's simply going insane.

Roku Stock Is a Long-Term Winner Sprinting Into Earnings
Thu, 21 Feb 2019 20:23:11 +0000
Roku (NASDAQ:ROKU) was once heralded as a streaming company following in the footsteps of Netflix (NASDAQ:NFLX) and pioneering a new era of streaming advertising. But during the late 2018 market selloff, investors forgot all about that growth narrative, and Roku stock dropped from nearly $80 to below $30 in just two months.Source: Roku That drop was a buying opportunity. Roku pre-announced fourth-quarter streaming numbers in early January. That announcement reminded investors that this is a growth company. Roku stock bounced back. Now, it sits at $54, and has essentially doubled in roughly two months. Earnings are due after the bell on Thursday, 2/21. The numbers should be good (the pre-announcement was strong). The guide should be good, too, given positive trends in the streaming market. But, there is significant uncertainty when it comes to how Roku stock will react to those earnings.On one hand, you have a growth stock that is just getting its groove back, has a long ways to go before eclipsing all time highs, and could rally towards those all time highs on good numbers. On the other hand, you have a stock that has doubled in two months, is in technically overbought territory, and could be due for a natural pullback on even good numbers.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Healthy Dividend Stocks to Buy for Extra Stability Which one will win out? No one really knows. As such, the near term outlook for Roku stock is uncertain.But, the long term outlook here remains robust. In the big picture, this is a company rapidly transforming into the cable box of streaming, a position which warrants Roku stock heading significantly higher in the long run. As such, long term investors would be wise to hold through what will be a volatile earnings report, and buy on any material weakness. Earnings Provide Significant VolatilityEarnings reports always inject a significant amount of volatility into Roku stock. The company always tops estimates on both the top and bottom lines. But, some times the stock rallies in a big way. Other times, it drops in a big way.That is simply the nature of an early-stage, high-growth, still-small, freshly public company like Roku. There's a lot of noise in the first few earnings reports for such companies because investors are trying to see if the company really is a long-term winner. Any clues that they are lead to a big rally. Any clues that they aren't lead to a big drop.Roku stock is no different. Right now, investors are trying to figure out just how big Roku can become in the streaming market. We all know the streaming market will be large. We also all know that they are a lot of competitors in this market. Roku is leading the charge on the streaming service aggregation ecosystem front. This has been the case for a while. But, investors are concerned that without much of a moat, bigger competition can come along and steal Roku's share rather easily.As such, investors are desperately seeking for clues as to whether Roku will become a Netflix-like success, or a GoPro (NASDAQ:GPRO)-like flop.Right now, the success story is taking hold over the flop story. The pre-announced Q4 engagement and streaming numbers were very strong. Active accounts rose 40% year-over-year. Streaming hours rose by nearly 70%. Ever since that report, investors have bid up Roku stock on the assumption that those strong engagement numbers will lead to strong financial numbers, and a healthy first quarter guide.That may very well happen. But if history tells us anything, it's that big rallies in stocks like Roku stock are usually followed by natural pullbacks on even good news. As such, while Q4 numbers will be good, there is a significant amount of uncertainty regarding how Roku stock will react to those numbers in the near term. The Long-Term Outlook for ROKU Stock is HealthyIn the big picture, the near-term reaction to Q4 earnings is largely irrelevant. That's because the trends remain in place for this company to ultimately become the cable box of the streaming world one day, and in so doing, turn into a $10 billion-plus company.In a nutshell, the big-picture bull thesis on Roku stock is as follows. Every customer is pivoting to streaming due to enhanced convenience and lower cost. Every company is pivoting to streaming, too. That means both demand and supply in the streaming market are simultaneously growing and becoming increasingly diverse, further implying that it will become harder for consumers to discover suppliers, and for suppliers to reach consumers. As this trend plays out over the next several years, there will be a huge need for someone to aggregate all that streaming supply, organize it, curate it, and deliver it to consumers in a frictionless manner so as optimize consumer discovery and supplier reach (think the cable box for streaming).That someone is Roku. Sure, there are multiple players in this market. But, Roku is the head-and-shoulders leader in both streaming devices, and smart TVs. That's big, since network effects are now in play. The more consumers have a Roku device or Roku smart TV, the more Roku becomes the norm for accessing streaming services. The more it becomes the norm, the more consumers will flock to it. Further, the more consumers flock to Roku, the more Roku becomes indispensable to streaming service suppliers in this market since the Roku ecosystem has increasingly wide and irreplaceable reach. * The 10 Best Cheap Stocks to Buy Right Now Putting it all together, it looks like Roku is a long-term winner in the making. As such, with a market cap of just $5 billion today versus a $150 billion-plus market cap over at Netflix, Roku stock should head significantly higher in a long-term window. But, the stock has doubled over the past two months in anticipation of strong Q4 numbers. As such, buyers here should proceed with caution.As of this writing, Luke Lango was long ROKU and NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Roku Stock Is a Long-Term Winner Sprinting Into Earnings appeared first on InvestorPlace.

Be Sociable, Share!

Related Posts


MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The educational training program and software services are provided to improve financial understanding.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.