Is Netflix's Run As A Market Darling Over?


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.


Last year, streaming service Netflix

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(NASDAQ: NFLX) was a must-have stock delivering returns of more than 100 percent to shareholders. However, since the start of 2016, the stock has fallen 20 percent and interest in the company has cooled significantly, leading many to wonder whether or not the company's run at the top is over.Bears EmergeThe recent decline in Netflix shares have caused many to begin sounding bear warnings about the stock's potential. Critics point to slowing subscriber growth in the US and rising competition from firms like Amazon.com Inc.

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(NASDAQ: AMZN) as reasons that the company can't keep up with its 2015 performance. They believe that although Netflix's international expansion looks promising on the outside, the firm is likely to struggle with licensing costs and infrastructure restrictions. Still A Good Case For GrowthDespite concerns about Netflix's ability to keep up, many are using the company's lower share price as an entry point as they believe the company hasn't fallen from grace just yet. The company is expecting to add some 6.1 million subscribers during the first three months of 2016, an impressive figure considering that the US market has already been saturated. Not only that, but Netflix's subscription fee in the US will rise this year, causing those who started out paying just $7.99 for the service to increase their monthly payments to $9.99 in order to gain access to HD content.Not only that, but the firm is expected to continue rolling out a spate of original programming in the coming year as well. Netflix's original series and documentaries have been a huge factor in setting the service apart from competitors.Buy-In OpportunityAt the moment, Netflix shares are trading nearly 30 percent lower than their 2015 peak, making the firm a good investment for those who believe that the market's perception is off. Netflix is certainly facing some obstacles when it comes to international expansion and competition in the coming years, but many believe that worries about the company's valuation are overdone.

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.


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