When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Netflix, Inc. (NFLX) – BUY
BUY Netflix, Inc. (NFLX) November 2021 $570-$575 in-the-money vertical BULL call spread at $4.10
Opening Trade
10-20-2021
expiration date: November 19, 2021
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This is a short-term trade that streaming company Netflix, Inc. (NFLX) will STAY ABOVE the strike price of $575 in the next 30 days.
We have technical support at $585 representing the 50-day moving average.
The quarter’s subscriber growth of 4.4 million was a solid beat over the expected 3.84 million
The price action we are witnessing is a typical “buy the rumor and sell the news.”
This morning’s mini-dip in NFLX is a profit-taking exercise, I process it as a buying opportunity with new buyers chomping at the bit to get into NFLX.
We are full-go for risk assets in the short-term with big tech melting up and Bitcoin exploding to the upside.
As the migration to digital increases throughout the developing world, Netflix's subscriber base will soar.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
If you don’t do options, buy the stock because my yearend target is $700.
Here are the specific trades you need to execute this position:
Buy 25 November 2021 (NFLX) $570 calls at………….………$56.45
Sell short 25 November 2021 (NFLX) $575 calls at………….$52.35
Net Cost:……………………..........................…….………..…….....$4.10
Potential Profit: $5 - $4.10 = $.90
(25 X 100 X $.90) = $2,250 or 21.95% in 30 days
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
