Netflix Hanging On by a Thread

Netflix (NFLX) bulls were celebrating the 14 Emmy nods that its House of Cards series has garnered, and Sunday night's single victory, by bidding up the stock aggressively in premarket -- maybe too aggressively. The big fade off the premarket highs has put Netflix shares in a precarious position, as we can see from the charts.

Netflix (NFLX) -- Daily Source: StockCharts.com View Chart » View in New Window »

Since July, this advance has danced around the 13-day moving average, and that key level has acted mostly as support. Now Netflix is in danger losing that support on a close under $303.32. That has me buying the weekly $300 puts around $4.70 in a play that's somewhat aggressive, but also offers nice risk-reward scenario. Not only is the stock in danger of losing the 13-day MA support, but a close under $300 could do psychological damage to bulls. I am looking for a move into the $285-to-$290 area....104 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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