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.
Just as the real-life U.S. presidential election cycle is heating up, it's once again time for everyone’s favorite fictional political drama to return to Netflix, Inc. (NASDAQ: NFLX) with a whole new season of episodes.
But can shareholders look forward to a "House of Cards" bounce in Netflix’s stock? Here’s a look at how Netflix’s stock has traded following the releases of the other three seasons of its hit show.
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Benzinga took a look at how Netflix's stock traded one week, one month and three months following the release of the first three seasons of House of Cards.
First off, it’s important to remember that Netflix has outperformed the S&P 500 overall by nearly 300 percent since season one of "House of Cards" first aired back in February of 2013. Therefore, Netflix has generally out-performed the overall market during the majority of the one-week, one-month and three-month periods over the last three years.
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However, looking specifically at the releases of "House of Cards," Netflix’s stock has out-performed the S&P by an average of 2.0 percent during the first week following each season premier.
That advantage dips to only a 0.4 percent out-performance in the first month, but balloons to an average out-performance of 11.4 percent in the three months following the series premier.
Before traders go out scooping up Netflix shares, remember that three seasons is a very small sample size and that Netflix has countless factors impacting its share price other than one TV show.
House of Cards season 4 is available now on Netflix.
Disclosure: the author holds no position in the stocks mentioned.
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.