Yesterday afternoon, NFLX reported strong subscriber additions, sending its stock flying. Today, an analyst from FBR slapped on a $900 price target for NFLX. NFLX shares ended the day up more than +18%.
We didn't hold any position on NFLX before earnings, because NFLX options were very expensive and it was difficult to gauge how much the stock was going to jump ahead of the report. But, after seeing the reaction after the report, it was clear that shorts were going to get squeezed. We did some nice day trades today. We traded NFLX calls a few times:
We also bought YOKU, which offers online television platform and online video services in China. These we held before NFLX earnings as there was hardly any premium on the options, and the reward-to-risk ratio was high. This also turned out well for us, and gave us a nice overnight +65% gain:
My Ecstatic Plays portfolio value continues to make new highs:
The portfolio is now up +158% in the last 356 days and up +13.83% for 2015. To find out more about my services, please click HERE.
The market seems to be "breathing" right now. Buyers were unwilling to push the broader market higher. It looks like people are waiting to see what next week would bring when more earnings come in. Also, SPX 2100 could be a psychological barrier. Energy stocks took a pause today. After the market, SLB traded higher after giving better-than-expected forecast. Financials were unstable and traded flat, even though GS reported strong earnings.
Good night and HappyTrading! ™