The security is pacing for its sixth-straight daily loss
Netflix Inc (NASDAQ:NFLX) stock is down 0.6% to trade at $623.12 at last check, on track for its sixth-straight daily loss. The shares still boast a 27.8% lead for 2024, and are not too far removed from their July 5, two-year high of $697.49, which was just short of a record peak. While the 20-day moving average is now guiding the equity lower, a bullish trendline now in play has historically preceded gains for NFLX.
The recent negative price action has placed Netflix stock within one standard deviation of its 126-day moving average, after it traded north of this trendline 80% of the time over the past two months, and in eight of the past 10 trading days.
According to Schaeffer's Senior Quantitative Analyst Rocky White, the security has flashed six similar signals during the past three years, after which it was higher one month later 60% of the time, averaging a 4.6% gain. A similar move would place NFLX back above $650.
Now seems like a great opportunity to bet on NFLX's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 28% sits in the 10th percentile of its 12-month range.