Making Money On Netflix Again! NFLX

About two weeks ago, we scored a big one on NFLX when the company approved increase of shares available on the market. We took gains as high as +159%!

Yesterday, after the market close, NFLX announced a 7-to-1 stock split. NFLX shares traded up to $705 in after-hours trading. We started trading NFLX calls on Monday, and, locked in some profits on Tuesday:

In our Chatroom, we discussed the possibility of a stock split. We all knew it was coming:

The way that it was trading this week and with the recent price target boosts to as high as $900/share, I felt that it was worth the risk to hold on to some calls. Sure enough, the news came yesterday!

We locked in profits this morning at over +77%:

Then, we rolled up and made some more quick, intraday, profits:

We got a little greedy and rolled up again, just before Icahn exited his position. NFLX quickly fell $7. So, we took the loss on our last trade:

So, from these trades, we ended up about $4195, or about +67% of the original trade! These trades have pushed my Ecstatic Plays Portfolio to a new all-time high! To subscribe or to find out more about this product, please CLICK HERE. If you have been reading my articles, but, have not checked out my services, please take a moment and CLICK HERE to see what Ecstatic Plays offers!

Where do we go from here on NFLX? I think there's a lot of trading left. When AAPL split 7-to-1, it jumped +8% the next day! NFLX is current up about +1.5% as I write this article. So, why the magic number "7"? This tells the investors that the company's management thinks that after the split, its stock should trade at least $100, which translates to above $700, pre-split. (Note that AAPL is trading around $130/share.) Yes, technically speaking, NFLX's charts are perhaps a bit toppy, and, may require some time to let the technicals catch up to its present share price.

Because Icahn just sold his entire NFLX holding, NFLX shares are going to be volatile for the next few days.

Netflix is still expanding world-wide. Its market cap is only about $40 billion, comparing to Facebook's $250 billion, Twitter's $24 billion, Time Warner's $50 billion, Amazon's $205 billion, Alibaba's $213 billion. Yes, I may be comparing oranges to apples. But, Netflix has a dominant position in what it does, world-wide, not just the US. Can we say the same about the others? Besides, lots of bigger corporations are looking to get into or boost up their existing online streaming video business. Is Netflix not a takeover target (not that it would want to sell itself)? BABA is looking to expand into the US markets. Instead of NFLX going into China, could BABA look to buy into the US? Or, perhaps some alliance could be made?

As, I'm finishing this article, NFLX trades at $687 (and, slipping)!

HappyTrading! ™

Posted to Ecstatic Plays on Jun 24, 2015 — 11:06 AM
Comments ({[comments.length]})
Sort By:
Loading Comments
No comments. Break the ice and be the first!
Error loading comments Click here to retry
No comments found matching this filter
Want to add a comment? Take me to the new comment box!