Netflix Shows Post-Earnings Strength

Let me be crystal clear about something right off the bat – this week is going to be extremely volatile with the election today.

If you’re planning to trade, please, please, please do not trade bigger than you’re comfortable with.

That said, I’m seeing some really interesting setups I want to share with you.

Netflix (NFLX) is looking absolutely beautiful right now.

We’re seeing a perfect post-earnings profit surge setup, with the stock sitting right at the point of control post-earnings.

I’ve got to tell you this one looks really good.

Netflix (NFLX)(Click to enlarge)

Despite yesterday’s market sell-off, Netflix showed impressive relative strength.

Why Netflix?

  • Perfect post-earnings profit surge setup
  • Sitting at key point of control level
  • Extremely liquid options chain

For my full take, click the image below and watch my video.

Market Volatility?

The only hesitation I have here is that the options are pretty expensive.

This might be a bit pricey for our typical Profit Surge Trade, but the setup is too good not to mention.

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YOUR ACTION PLAN

Listen gang, I cannot stress this enough – if you’re thinking about putting on trades this week, especially if you’re planning to be away from your screens, consider these points:

  • Maybe do a smaller size than normal
  • Make sure you have stops in place
  • Be prepared for significant volatility

Don’t trade bigger than you’re comfortable with during election week

Remember, I love volatility and I have no problem trading in it, but you need to understand what’s happening in the world right now.

Big election today means we could see some wild moves.

That’s why I decided to play a lotto in NFLX yesterday in my Daily Profits Live Trading Room, buying this week’s $785 calls for $1.45. It wasn’t the safest play, buying deep out-the-money options, but for only $1.45 per contract, I thought it was worth a shot.

And with NFLX popping higher this morning, I was able to close them out for $2.20.

That’s a 51.7% return in less than 24 hours.

Now, if you missed that don’t worry, I have plans to trade this again.

If you’d like to learn more about how I trade and the Daily Profits Live Trading Room I run, click here to find out more.


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