$NFLX

NFLX is appealing now as a well-known, reasonably priced, fast-moving stock poised for heavy options volume. Its price is expected to rise around uncertain events such as earnings, more likely in two weeks or two months, though it sits near a resistance/support area.

BullishHe framed it in months
“What "Highly Unusual" NDX Drop, NFLX Earnings Selloff Means for Tech”
Schwab NetworkPublished Oct 22 · 7 passages

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7 passages
4:106:59

Let's talk about one of those names that generated profits. Netflix is the first thing that comes to mind here. I mean, she was thriving today. I will confirm that she is still thriving as we speak before I continue.

Yes, it is. It has increased by 3%. So, this goes very far against the general trend .

It seems that in terms of valuation and stock price, it will look as I explained. We are in an area that was considered resistance, and perhaps support, whether the stock price is $65 or the market capitalization is $300 billion .

Now, going back a little, Netflix is one of those names that are so prevalent, and I think it's a perfect example of the names that make up and drive the Nasdaq 100 index .

But looking at the bigger picture, as an indicator, I reviewed Netflix's ranking in terms of reach within the Nasdaq 100 index at its recent highs. It was very close to the top ten positions in the index.

It then fell back to around 35th place, its lowest point two years ago.

Well, given the activity in Netflix's options market , does that suggest that investors are buying on the low end , or are they preparing for a sharp rise in either direction?

In my opinion, Netflix is appealing this week, next week, and last week, because it is a well- known brand. Its price is reasonable, it moves quickly, and when you combine these factors, you get a product that I believe is poised for a large trading volume in options, and it appears day after day among the top ten stocks in terms of volume.

So I think its price will rise with the occurrence of uncertain events, such as the announcement of earnings, but this is more likely to be the case when I return in two weeks or two months.

Watchpoints

NFLX price reaction around an earnings announcement

What this channel has said about $NFLX

Schwab Network has 13 calls on this stock; only the adjacent ones are shown.

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