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Home › Forums › Swing Trades › Dip Buy in NFLX
Along with the rest of the market, NFLX is gapping down hard today. I think the stock will have support off of the pivot low from November, the rising 200 day moving average, and the range low into the 95’s. This looks like a good opportunity to enter into some bull put spreads.
Here’s the trade:
Sell to open NFLX Feb 85/80 bull put spread @0.74 or higher
ADD to the trade at 1.00
ADD to the trade at 1.70
CLOSE the trade at 0.20 with intent to reinitialize.
Got lucky on some news. We want to bail soon as earnings up on deck.
Float this order out:
Buy to Close NFLX Feb 85/80 put spread @0.25
Never got filled on this buy order, so still have core position on at a breakeven.
Earnings are after the close. Because I’ve only got a core I’ll hold it through earnings, and if the stock gaps down on earnings I will add to the position… on the second day lower.
The stock isn’t bouncing off support like it should. Failed patterns are just as important as fulfilled ones.
Also, the stock isn’t oversold anymore. Prices have gone sideways indicating acceptance of this 95 level.
On top of all that, if the stock really does break down, there’s not much in terms of support…
Just going to cut bait here and look for reentries.
Buy to close NFLX Feb 85/80 put spread @0.69