Netflix (NFLX) Offering Possible 53.85% Return Over the Next 29 Calendar Days

Netflix's most recent trend suggests a bullish bias. One trading opportunity on Netflix is a Bull Put Spread using a strike $330.00 short put and a strike $320.00 long put offers a potential 53.85% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $330.00 by expiration. The full premium credit of $3.50 would be kept by the premium seller. The risk of $6.50 would be incurred if the stock dropped below the $320.00 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 62.83 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

PRESS DIGEST – Wall Street Journal – Jan 22
Wed, 22 Jan 2020 05:42:09 +0000

Netflix, China Virus, IBM, Johnson & Johnson, Derek Jeter – 5 Things You Must Know Wednesday
Wed, 22 Jan 2020 05:21:00 +0000
Stock futures rise as China moves swiftly to limit the spread of the deadly coronavirus; Netflix's growth in the U.S. misses fourth-quarter estimates but international growth tops forecasts; IBM is higher after earnings and revenue top Wall Street expectations; Johnson & Johnson reports earnings.

Netflix forecasts tough start to 2020; Disney+ going global
Wed, 22 Jan 2020 04:28:22 +0000
International growth helped the streaming video service trounce expectations in the last quarter of 2019. Rivals including Walt Disney Co and Apple Inc are now fighting for streaming customers, and Netflix said it expects to add 7 million subscribers globally in the first quarter, below analysts' average of 8.82 million, according to IBES data from Refinitiv. For a company that has historically taken great pains to avoid mentioning competitive forces – it once called the video game Fortnite a bigger rival than other streaming services – it spent a considerable amount of time explaining why Disney's power will not have as damaging an effect on its engine of growth outside of America.

Dow Jones Futures: Stock Market Resistant To China Virus; These 3 Tech Giants Rise Late
Wed, 22 Jan 2020 04:02:18 +0000
Futures: Stocks held up Tuesday even as China virus fears slammed travel stocks. Netflix subscriber growth and IBM earnings beat, sending both stocks higher late. Tesla just kept rising.

Netflix Assures Investors It Can Handle Onslaught of Competitors
Wed, 22 Jan 2020 01:32:17 +0000
(Bloomberg) — Netflix Inc. is facing the toughest year in its history in terms of new streaming competition, but the company says it’s ready.With technology and media giants such as Apple Inc., AT&T Inc., Comcast Corp. and Walt Disney Co. all bringing new video platforms online, Netflix is working to keep customers loyal with a flood of shows and movies. The company plans to boost its spending by 20% this year, bringing its programming budget to about $12 billion on a profit-and-loss basis.“We view our big long-term opportunity as big and unchanged,” Chief Executive Officer Reed Hastings said during a pretaped recap of its fourth-quarter earnings, released Tuesday.Netflix climbed as much as 4.3% in late trading after delivering generally upbeat results, with overseas growth helping offset a slowdown at home. Though the company expects to add fewer subscribers in the current quarter than Wall Street projected, it said there’s “ample room for many services to grow.”Netflix investors have been grappling with whether the company’s days of reliable growth are over. The company added fewer customers in 2019 than it did in 2018, and its increase in the U.S. and Canada decelerated by more than 3 million. In posting the results Tuesday, Netflix said price hikes and a growing array of options have made it harder to attract customers.It’s only going to get tougher. Apple’s TV+ and the Disney+ platform both launched in the U.S. during November, enticing consumers with lower-cost services, while AT&T’s HBO Max and Comcast’s Peacock are both coming online in the next few months.All those competitors are likely to slow customer additions and increase the number of existing customers who cancel Netflix.Against that backdrop, Netflix posted its weakest year of domestic subscriber growth since it first broke out its online service from the company’s traditional DVD-by-mail business in 2011. Netflix is projecting a gain of 7 million paid subscribers worldwide in the first quarter, short of the 7.82 million estimate.“We are working hard to improve our service to combat these factors,” it said in a letter to shareholders.Staying the CourseBut the Los Gatos, California-based company argues that its strategy is still sound, and competition shouldn’t cause it to change course. Losing popular shows such as “Friends” to its new rivals has had no impact on viewership so far. Netflix subscribers are just finding other shows to watch, Chief Content Officer Ted Sarandos said.For proof, Netflix can point to its global growth in the latest quarter. The company added 8.76 million customers in the period, compared with forecasts of 7.65 million. Hastings described them as “amazing numbers.”Netflix has pinned its future potential on growth outside the U.S., where it doesn’t yet face the same level of competition. Europe and Latin America have been the company’s engine in the past couple years, and continued to serve that role in the fourth quarter. Netflix added 4.4 million customers in Europe, bringing its overall total to almost 52 million, and another 2.04 million customers in Latin America.Non-English ShowsNetflix plans to release more than 100 seasons of local language programming next year. Though its biggest global hits are mostly English-language shows such as “Stranger Things” and “The Witcher,” its most popular programs in many territories are in other languages, like Spain’s “Casa de Papel.” The company is also experimenting with different pricing plans in Asia.Netflix has borrowed billions to fund all that programming, and its long-term debt stands at almost $15 billion. But the company said this past year will mark the high-water mark in terms of its cash burn. Earnings of $1.30 a share also handily beat analyst estimates of 30 cents, lifted by a tax benefit.Investors weren’t sure what to make of Netflix’s results at first. The shares had dropped as much as 3% to $327.97 in extended trading before rebounding. The company’s shares climbed 4.5% so far this year before the close.“After several years of unchecked dominance in the U.S. streaming-video industry, Netflix faces high-profile new streaming rivals,” Geetha Ranganathan, a Bloomberg Intelligence analyst, said in a report. “Yet the breadth of its content and a compelling value proposition will make it hard for new entrants like Disney+ to unseat the company.”(An earlier version of the story corrected a quarterly financial comparison.)To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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