NFLX Update

NFLX seemed to see early gains based on a couple of million shares bought by a director of the company, the thing was they were bought at $85 on an option exercise. The market seemed to get that after first reacting to the "Insider buys 2+ million shares".

This is for those who may be holding VERY short term NFLX puts, like today's expiration, longer term is not the same issue.

 The 1 min intraday NFLX chart for today is nearly perfectly in line with price action, that means it's better than a negative divergence, not as good as a positive divergence. Based on that alone, I'd think additional downside in NFLX anytime soon would be difficult to achieve.


The 2 min chart has a small positive divergence on it, this isn't a concern for equity shorts or longer dated puts (longer than today's expiration), but for today it's not good for puts.

The 3 min chart's overall position is leading negative, but within that is today and it is showing a positive intraday divergence, again suggesting the probabilities are moving closer to a move up intraday or at least very low chances for a significant move down for options (puts) expiring today.

For longer dated puts or equity shorts, this leading negative 5 min should give you some confidence in the position, but for today's expiration, I doubt it does much.

The 15 min VERY leading negative chart is exactly why, if I had room, I'd sell short or buy puts in to any price strength at all, this shows very strong probabilities of a bad downside move, thus any price strength to sell short or buy puts in to, is truly a gift.