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Home › Forums › Open Trades › Breakout in NFLX
Very nice long term base setting up in NFLX. It’s had its share of hits this year, but the most recent earnings gap has pushed it to touch the range highs a few times. Looking for continuation. If you want to be specific, this is a 2-year long cup and handle pattern.
We also see a smaller version of a cup and handle pattern. Big earnings gap, run then retrace, and has been slowly basing under that big level.
This is a massive pattern, and if it does breakout there will be plenty of opportunities to play this in 2017.
If you want to be aggressive, then the Feb 135 or 140 call buy makes sense. IV will be high due to earnings so you won’t have to worry too much about time decay.
We’re going to focus on a little more conservative trade setup… bull call spreads.
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTO | NFLX | 17 Feb 17 | 130 | Call |
STO | NFLX | 17 Feb 17 | 140 | Call |
Total Debit: | 3.3 |
Full risk, sell half at 5.00
Opex is getting close so we’re going to close these spreads out.
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STC | NFLX | 17 Feb 17 | 130 | Call |
BTC | NFLX | 17 Feb 17 | 140 | Call |
Total Credit: | 9.6 |