Friday, February 15, 2013

Netflix - extension paradise

Netflix gone wild. I counted 5 one-twos. Expect three-four 5 times soon, not less.


Main strategy: Premium selling.

There will be only wave 4s and 5s from here - price will be range bound for some time.

Every time NFLX bounces up from support line (wave 4 range of the first complete impulse) you must be selling  put verticals.

Selling 4 times on weeklies is better than selling 1 monthly spread because Theta is bigger on weeklies and you can grab more premium faster.

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