Netflix (nflx) Chart Breakout

Discussion in 'Investment Charts' started by longtermbull, Jul 18, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Netflix has a chart breakout situation after news of an increase in worldwide customers. Once a rumored target for Apple, has Apple missed the boat?

    Price $183.60 @ 18 July 2017

    [​IMG]
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    One thing you can almost bank on with NFLX is the volatility when they report earnings.

    I haven't owned the stock for a while, but you're quite likely to make $ by buying both a put and a call at reasonable prices (and reasonably close to the price going in) ahead of earnings.

    You can almost certainly make a nice profit (after paying for both options premiums) when the stock rises or falls well into double digits - which it almost always seems to do after earnings.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    Good point - surprisingly volatile in a relatively narrow trading range. Will Netflix become a takeover target at some point? Or would it be cheaper for the likes of Apple to set up their own system - poach a few execs from Netflix?
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I thought Apple should have bought them out years ago when they were much cheaper. I don't know if they'd want to buy them when they're this high.
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    Apple is going to struggle to spend its war chest. The directors wont want a mature company, for which they would pay full price, and any early stage investment would have added risks. What will they do? Payment of a special dividend would be a cop out and not reflect well on the directors.
     
  6. gowiththeflow

    gowiththeflow Senior Investor

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    Netflix is also seen as "trendy" among the younger generation and while trends do change, it gives the company a big head start over its competitors.
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    On the way up again - will it come crashing down again JR?
     
  8. longtermbull

    longtermbull Administrator Staff Member

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    You were right JR - volatile!
     
  9. gowiththeflow

    gowiththeflow Senior Investor

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    Good call JR, run ahead of figures then a sell-off and after a period of consolidation we are off and running again with the shares moving higher!
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I've recently acquired a pretty small long stock position via the options I bought in the last couple of months.
     
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