NFLX Netflix: Re: Like shooting DVDs in a barrel

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	Mike Barkett
	Washington, DC User since Nov 2007	56
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Re: Like shooting DVDs in a barrel

I have to agree with Nibbler on this one, but I'll be more aggressive... there is a $2 premium on put options that are $5 underwater and expiring in 4 days. That's pretty hefty, especially since the equivalent calls are trading 30-40% lower. Lots of speculators see a big drop going into next week, I think.

This is a reply coverage to NFLX: Like shooting DVDs in a barrel by Nibbler Leela on 6/11/10.

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What People Are Saying...

Mike Barkett said at 6/14/10 10:14 AM Price action was $123.87 +3.18 (+2.6%)

premium on the puts is still ridiculously high. Expiring in 4 days yet we've got to drop 6% just to break even? With piddly volume, the air will eventually let out, but I'm not sure it will by Friday so I am still not touching any options here.

Josh Warner-Burke said at 6/14/10 10:28 AM Price action was $124.72 +4.03 (+3.3%)

Keep doubting Netflix :) I was right when I said last year it was turning into a superstar.

Mike Barkett said at 6/14/10 10:30 AM Price action was $124.88 +4.19 (+3.5%)

keep commenting only on the up days. :)

David Sachdev said at 6/14/10 11:47 PM Price action was $126.81 +6.12 (+5.1%)

Have to say that this high flyer is worth some more research. Not sure where it is going next...and wondering if it is a chance to buy some puts or if we keep climbing.

Chris Cook said at 6/17/10 9:40 PM Price action was $125.86 +1.19 (+1.0%)

I knew Josh wouldn't let this go unchallenged. Just to throw a baseless claim into the mix i've read that APPL wants to get in (and for APPL that means ruthlessly dominate) streaming movies via itunes.

Mike Barkett said at 6/25/10 10:23 AM Price action was $115.03 -0.22 (-0.2%)

might look to close this one today rather than roll the dice with monday...