27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
With Wednesday's close at $484.67, Netflix, Inc. (NASDAQ: NFLX) shares have managed to climb $8 per share since Benzinga's last coverage of the stock. The market, meanwhile, has actually pulled back slightly during that time frame.
What was noted in the last report on Netflix on September 2:
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- The bulls were in love with Netflix's ability to put out bullish news/announcements on a consistent basis; they love the company's estimated 2015 revenue growth of 25 percent to 30 percent. They have been comforted by Netflix's very strong technicals.
- The bears, meanwhile, were screaming about the company's 70 P/E, 5.84 price-to-book and 17.74 price-to-sales ratios. They noted the stock's technically overbought condition.
- Technicians set the upside target for Netflix at approximately $550 per share, the upper edge of a long-term uptrend channel. They put support last week at $446-$457.
Not much has changed in terms of the technicians' take on Netflix since that report.
The stock looks great technically, which was only reinforced by the clear outperformance this week. Netflix shares rose over the last week even as the broader market declined –- never a bad sign for those long of a stock and nearly always a sign of more pain to come for those short of that stock.
The stock still has a technical upside projection at $550. The key uptrend line support, however, now comes in at around $462.43.
Netflix still appears to be a “buy the dip” situation where any short-term weakness in the stock could be used as a chance to accumulate shares. Until the uptrend is broken, that bullish stance will remain unchanged.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.