One of my favorite stocks to watch during the earnings season is Netflix (symbol: NFLX. Come on.). I avoid this thing like the plague, but I like to sit in the bleachers and observe the action.
Imagine how weekly call owners must have felt when they saw NFLX after earnings came out. Visions of new sports cars dancing in the heads of WSB adolescents. What a thrill!
Oh, but wait……………
So basically from being up $50 per share down to unchanged. Indeed, I think it’s down a little bit right now. The option sellers made out fantastic – – this beast seems stuck right near its closing price – – whereas bug-eyed directional players got the ol’ shaft.
It must be maddening to be “trapped” in an options position and have to wait until the next day, which for a stock like this probably feels more like a year.
One mustn’t entirely trust after-hours action, either. Yesterday was a good day for me, but after the close, one of my shorts – Steel Dynamics (STLD) went exploding higher after the close. Thus, I was bracing myself for at least one lousy stinker this morning. And yet………….
In other words, I kept the position with absolutely no harm suffered.
This is definitely a market one has to take day to day (and moment to moment), but it’s at least encouraging to see that the agonizingly-defended 2750 line was broken. Interestingly, the “role shift” from support to resistance was plainly expressed during Tuesday’s trading.
As for my own portfolio, for better or worse, I have again stuck my fists on my hips, wind blowing through my getting-way-too-long hair, and stuck with my positions. I have 90, count ’em, 90 short positions at a 177% commitment level. All 90 of them were profitable as of Tuesday’s close.