There's a lot of earnings this week and I am making very specific plays each day. For tonight, the big earnings report is on NFLX. Netflix has been up a lot over the past year and has gained 231%. The stock has gone from $216 after last earnings report to $266 where it sits currently. The stock is very expensive right now as it has a 651 trailing PE, 86 forward PE and a huge 9.69 PEG. The short percent is still high at 16.90 but has gone down since the prior month. This stock has gone up too far too fast and I'm expecting a decrease in after hours unless the earnings report shocks us with outstanding numbers. I'm selling the 300/305 Call Credit Spreads at around $1.05 per. I also did a 260/265 Call Credit Spread at 2.50. If I was a gambling man I would probably go all in on the 260/265 call credit spread. But with the 300/305 I will still make money even if the stock goes up after earnings. It just can't go up a lot. The probabilty is stacked in my favor for this trade.
Tomorrow is Apple's earnings and I will be much more bullish on this stock.
Jonny
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