THE NEXT BULLSEYE TRADE DROPS IN:
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*I want to emphasize that I have estimated the Max profit potential of my trade plans. These do not represent my personal, realized profits (except if noted). Options trade in a huge range from opening to expiry, and exact profits and losses depend on when the trade was entered and when exited. Trading is hard, results not guaranteed and should not be expected to be replicated typically.
Jan. 2, 2024
NFLX puts – Your Bullseye Pick of the Week - Bullseye Pick of the Week
My Trade Plan Details:
- NFLX Jan 19, 2024 $470 puts near $5
- Stop: Close over $495
- Target 1: $465
- Target 2: $450
My Reasoning:
The QQQ is now trading under the 20-hour moving average for the second day now. That is a bearish signal, and you need to pay attention to that.
Because things are slipping, I want to get on the short side of things this week. Of all the large tech stocks, I think NFLX has the most downside potential right now.
They had bad news come out today about subscriber growth, and I don’t think that is fully baked into the price of the stock yet. That is the main reason that…
My Bullseye pick this week is to buy Netflix (NFLX) puts.
Today, my plan is to get started with a position on NFLX near the open. I would like to save some room to add more contracts if NFLX bounces to the $485 area.
Remember, this is a week I am betting against NFLX, so I am buying puts and hoping it continues to go lower.
If I am wrong, NFLX will shake off the news today and resume its uptrend. For me, that would mean a close above $495 for the stop loss on this trade.