As we move into the part of the earnings season which is actually interesting, the big feature tonight is Netflix (NFLX). Here is the recent history, in which two prior tops didn’t really amount to anything, so I’m not so sure the third one will either. If we do fall, major support doesn’t exist until that supporting trendline defining the lower boundary of the price channel.
Here is the Market Capitalization chart.
Then we have the IV Rank, showing that options are rather richly-valued right now.
Our animated feature is the Price Cone, another Slope exclusive, which neatly shows the expected 30-day range based on the implied volatility of the options.
Lastly there are the quarterly earnings reaction, which are certainly tamped down from the wild and wooly days of yesterday.
Probably the strongest signal for NFLX is the fact that I took profits on my January puts, which almost assures a complete crash this evening.
