Netflix (NFLX) has been in a consistent downturn ever since it peaked at $304/share on news of it increasing its monthly subscription fees by 60%. Since then it has been beating its head against, a nasty downward trend-line off of those highs. But now it seems to have found some comfort at the 200-day moving average, like it has done numerous times over the years. 

So then, NFLX essentially finds itself trapped inbetween a rock and a hard place. Break below the 200-day moving average, and I am fairly confident you’ll see this stock drop below $200, which at that point would make its calls 1-2 months out an incredible bargain, and should it break above that $248 level, and it could contest the $280’s fairly quickly. Just wait for one of the sides to break first before jumping in the fray. 

Chart Analysis on NFLX…

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