Also, today's HBO news that they're launching a standalone
streaming service probably had more holders ready to bail on any
bad news. Ideally it gets smacked even further on the open, giving
the opportunity to sell some OTM put credit spreads while the
volatility is still jacked and then cover at 50% or more on any
dip-buyers and/or short covering.
The $NFLX playbook I outlined last night played out perfectly -
takes some cojones, but selling OTM put credit spreads after seeing
how the first 5-10 minutes plays out after an earnings crash can
give quit profits.
The rationale: High volatility will inevitably come down and the
combination of shorts that are going to cover with 25% unlevered
gains overnight and 'value' buyers like Uncle Carl's son ('greatest
consumer bargain in history' is what he said before the $100 crash)
stepping in can give you 60%+ gains in less than 2 hours: sold the
Oct 350-345 put spreads at $2.25 & covered at $1 about 70
minutes later.
N.B.: Critical not to get piggy - set your profit target
immediately at 50%-75%; have had to learn the hard way not to hold
out for 100%.
new primary pivot is 1846 on ES which is just barely above where
ES is currently trading at. Keep an eye on that pivot
tonight. TS is giving me issues at the moment so I can't post a
chart, will post later
hi guys, can I ask one more favor? can you delete the extra
white spaces in your posts before you post them? Steve and I are
always editing posts and doing it for you, it allows more posts to
be displayed as it eliminates extra white space. It's easy to
do, just hit the delete button after your last word to eliminate
any extra lines you may have put in by hitting the enter button too
many times
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NFLX
Posted by racerick on 15th of Oct 2014 at 04:05 pm
Wow, someone doesn't like earnings, beat by a few cents Rev's were as anticipated and stock down 70 points
Evidently subscriber decline is not
Posted by a_l_ on 15th of Oct 2014 at 04:59 pm
Evidently subscriber decline is not a good thing.
Also, today's HBO news that
Posted by a_l_ on 15th of Oct 2014 at 05:26 pm
Also, today's HBO news that they're launching a standalone streaming service probably had more holders ready to bail on any bad news. Ideally it gets smacked even further on the open, giving the opportunity to sell some OTM put credit spreads while the volatility is still jacked and then cover at 50% or more on any dip-buyers and/or short covering.
The $NFLX playbook I outlined
Posted by a_l_ on 16th of Oct 2014 at 10:57 am
The $NFLX playbook I outlined last night played out perfectly - takes some cojones, but selling OTM put credit spreads after seeing how the first 5-10 minutes plays out after an earnings crash can give quit profits.
The rationale: High volatility will inevitably come down and the combination of shorts that are going to cover with 25% unlevered gains overnight and 'value' buyers like Uncle Carl's son ('greatest consumer bargain in history' is what he said before the $100 crash) stepping in can give you 60%+ gains in less than 2 hours: sold the Oct 350-345 put spreads at $2.25 & covered at $1 about 70 minutes later.
N.B.: Critical not to get piggy - set your profit target immediately at 50%-75%; have had to learn the hard way not to hold out for 100%.
Futures took a dive after
Posted by renko777 on 15th of Oct 2014 at 05:35 pm
Futures took a dive after the market closed. Can't believe it was because of NFLX. Anyone know if other companies take a large drop after earning?
new primary pivot is 1846
Posted by matt on 15th of Oct 2014 at 06:09 pm
new primary pivot is 1846 on ES which is just barely above where ES is currently trading at. Keep an eye on that pivot tonight. TS is giving me issues at the moment so I can't post a chart, will post later
nflx now at 330 in
Posted by pintopower on 15th of Oct 2014 at 05:20 pm
nflx now at 330 in after-hours. if it opens there and bounces, it could set up a nice head and shoulders on daily chart.
hi guys, can I ask
Posted by matt on 15th of Oct 2014 at 04:13 pm
hi guys, can I ask one more favor? can you delete the extra white spaces in your posts before you post them? Steve and I are always editing posts and doing it for you, it allows more posts to be displayed as it eliminates extra white space. It's easy to do, just hit the delete button after your last word to eliminate any extra lines you may have put in by hitting the enter button too many times