Netflix Swoons As Apple Encroaches


Today, Netflix shares swooned badly after a Wall Street Journal report revealed secret talks between Apple and Comcast over a new streaming TV service. The two companies are reportedly in discussions to pursue the development of an Apple set-top box and special data treatment.

nflx technicals
click to enlarge

This presents the following opportunity for aggressive investors, based on a a bearish options bet. It will lose a limited amount of money if we are wrong, and could hit big if the stock drops.

The Opportunity

  • Probability : 60% (my subjective guesstimate)
  • Risk : Reward : around 1 to 4
  • Duration: 7 day trade
  • Minimum Investment:$130
  • Maximum Investment: limit to 2% of your overall portfolio


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