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.