Finish Up Them Taters and Watch Netflix, Inc. (NFLX) Run

Netflix, Inc. (NASDAQ:NFLX) will release its 'Wet Hot American Summer' prequel July 31

Jul 2, 2015 at 3:11 PM
facebook twitter linkedin

To the delight of cult enthusiasts everywhere, Netflix, Inc. (NASDAQ:NFLX) has released the trailer of its "Wet Hot American Summer" prequel -- an eight-part series set for release Friday, July 31. Not only will members of the original cast return -- Amy Poehler, Paul Rudd, and Janeane Garofalo, to name a few -- but cameos from Kristen Wiig, Jon Hamm, and "Weird Al" Yankovic are also highly anticipated.

While the "Wet Hot American Summer: First Day of Camp" is likely generating plenty of buzz, it's done little to move the stock -- with NFLX last seen 0.1% higher at $656.21. Longer term, the equity has been a technical standout, and is up nearly 92% year-to-date.

More recently, the shares have pulled back near their rising 40-day moving average after hitting an all-time peak of $706.24 in late June, following the firm's big stock split announcement. If past is precedent, the equity could be poised to resume its trek into record-high territory. In fact, according to Schaeffer's Senior Quantitative Analyst Rocky White, in the nine other times this signal has occurred during the last three years, NFLX has averaged a 21-day return of 4.1%, and is positive two-thirds of the time.

This would most likely please option traders, who have been initiating long calls over puts at a rapid-fire rate in recent months. Specifically, the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.09 ranks in the 81st percentile of its annual range.

Outside of the options pits, however, not everyone has climbed on board the stock's bullish bandwagon. Of the 28 analysts covering the shares, 11 still maintain a "hold" or "strong sell" recommendation. Meanwhile, the average 12-month price target of $630.59 stands at a discount to current trading levels. Should Netflix, Inc.  (NASDAQ:NFLX) continue to outperform on the charts, a round of upgrades and/or price-target hikes could fuel its fire.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners