In my opinion NFLX seems to have the potential to drop some in the coming weeks, as it seems overpriced in the 90s, based on the average analyst price targets and their earnings picture. I will be straightforward that I am playing the downside using puts and am already profitable on the position, so I could close it out at anypoint. However there seems the potential for it to fall at least another 10 points or so in the next 30 days. To be honest I am quite surprised that it is in the 90s still and since I normally never ever play this stock and my research has not produced any positive news that would justify this stocks current price, I am wondering if I am missing something important?
What do you mean by overpriced??? For the last three days NFLX is down, but Christmas break is coming and daily volume has been reducing, so afterwards who knows what will happen. On the daily chart 90 may turn out to be support, wait and see if there is a reaction or not. I daytrade so don't have a postion currently.
I took profits on those NFLX puts. When the stock broke down thru 90 and fell to 89.30 the temptation to lock in some profits was just too strong. Now that I have sold my puts, the stock will probably fall to 82 or so, but I was just to worried that the politicians might try to come out with a plan to kick the can down the road and rally the mkts before Jan 1st.