Howdy fellow Chaikin Power Users, Double A here to tell you how I used the Chaikin Analytics edge to book a big win trading NFLX through earnings.
Netflix (NFLX) reported last week (10/15), investors we're quick to sell the stock down over 25%, on some disappointment, as the expectations had apparently gone to high.
Back on 10/09, Prior to earnings, Chaikin Analytics gave NFLX both an overbought sell and a relative strength breakdown signal.
Netflix (NFLX) reported last week (10/15), investors we're quick to sell the stock down over 25%, on some disappointment, as the expectations had apparently gone to high.
Back on 10/09, Prior to earnings, Chaikin Analytics gave NFLX both an overbought sell and a relative strength breakdown signal.
NFLX also broke it's diagonal trend line back on 9/15, then formed a bear flag.
With a very bearish power gauge, overbought oscillator , overbought sell signal, relative strength breakdown signal, a break in diagonal support, and high analysts expectations, I stepped out and intimated a trade I usually wouldn't have. I purchased a long dated OTM put.
I purchased the DEC 300 put for .56 cents.
As we all know now, NFLX disappointed and the stock sold off hard after hours. I got out of the trade at the open the day following earnings for 8.40. Net gain of 7.84 per contract for a three day trade.
While this is not the type of trade we usually initiate around earnings, the return on risk, the technicals AND the Chaikin Analytics edge gave me confidence in the trade.
I purchased the DEC 300 put for .56 cents.
As we all know now, NFLX disappointed and the stock sold off hard after hours. I got out of the trade at the open the day following earnings for 8.40. Net gain of 7.84 per contract for a three day trade.
While this is not the type of trade we usually initiate around earnings, the return on risk, the technicals AND the Chaikin Analytics edge gave me confidence in the trade.
Happy Trading Chaikin Power Users.
-Double A
-Double A
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