Now it all depends on the timeframe you are trading in. I
am referencing the Daily chart. If you notice the stock has
moved higher over the last several days, but the volume is waning,
MACD is not even positive, RSI has a lower low from the high and
daily price bars are star patterns. Now I am not saying the
stock is going to collapse here, just running into an exhaustive
move and the pattern is bearish on the Daily chart. The
stock is still very bullish on the Weekly and Monthly chart- but
currently looks like it might pullback. Nothing goes up in a
straight line forever. in the markets. Where it might pullback -
know one knows (5, 10, 20 day ema). Every fund has been
buying NFLX and why not, it is the winner out of this pandemic but
at some point when everyone is "in" you lose momentum and swing
back down. That is just my take on it and do not trade on my
advice. due your own DD. Hope that helps answering your
question.
Had Calls on NFLX. Sold
Posted by ssaffer on 7th of May 2020 at 01:27 pm
Had Calls on NFLX. Sold them the other day, now switching to PUTS. Daily chart looks bearish and volume looks like everyone is all in.
Hey Ssaffer - would you
Posted by z0ned on 7th of May 2020 at 05:26 pm
Hey Ssaffer - would you please expand on “chart looks bearish”. Trying to learn.... Thanks!
Now it all depends on
Posted by ssaffer on 7th of May 2020 at 05:41 pm
Now it all depends on the timeframe you are trading in. I am referencing the Daily chart. If you notice the stock has moved higher over the last several days, but the volume is waning, MACD is not even positive, RSI has a lower low from the high and daily price bars are star patterns. Now I am not saying the stock is going to collapse here, just running into an exhaustive move and the pattern is bearish on the Daily chart. The stock is still very bullish on the Weekly and Monthly chart- but currently looks like it might pullback. Nothing goes up in a straight line forever. in the markets. Where it might pullback - know one knows (5, 10, 20 day ema). Every fund has been buying NFLX and why not, it is the winner out of this pandemic but at some point when everyone is "in" you lose momentum and swing back down. That is just my take on it and do not trade on my advice. due your own DD. Hope that helps answering your question.
Looks like it would have
Posted by hoek2 on 8th of May 2020 at 02:20 pm
Looks like it would have been a good short to get some today...
Cheers Ssaffer - appreciate the
Posted by z0ned on 7th of May 2020 at 05:44 pm
Cheers Ssaffer - appreciate the detailed response. Thank you.
I just took a little
Posted by rollerblader on 7th of May 2020 at 04:58 pm
I just took a little short on it. What's your preferred timing on puts for a stock that has run up, 1 month, 3 months?