On Friday’s Options Action, the crew analyzed the performance of Netflix (NFLX). Netflix has recently completed a head and shoulders formation which suggests a possible top. Coupled with a bullish trendline that sits around $275 provides a target on a move lower after earnings. Expecting a move lower towards support Michael Khouw suggests buying a Nov 325/275 Put Vertical for a $12.00 Debit. As of Friday’s close, this call was trading at $11.65.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: NFLX Options Action