This is a high risk trade. I would not recommend anyone take this trade. However, I the odds look worth the risk to me. I got a NFLX Jan 320/310 Put Spread for 3.55 today 12/18/19 at 11:56am ET.
The Earnings Report is 1/21/20.
What makes me think its a shorting opportunity is:
- Hitting the 200 dma
- Hitting the 27.2% Fibonacci extension off the most recent swing
- Its far from the 3ema
- The stochastics are over 80%
- Exhausted its harmonic move
- Closed slightly over the Bollinger Band
I'll figure out the 50% retracement after I see enough price action but in the meantime, I placed a limit order to sell the Put Spread at 9.90 because its a 10 point spread.
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