NEW DIRECTIONAL CALL PLAYS

Netflix, Inc. - NFLX - close: 81.48 change: +1.70

Stop Loss: 78.20
Target(s): 89.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I have had my eyes on NFLX as a bullish candidate the last few days. While most of the market has been sinking shares of NFLX have been consolidating sideways under resistance near $80.00 and its 200-dma. Now shares are starting to breakout and it could spark a short squeeze. The most recent data listed short interest at 31% of the 54.2 million share float.

NFLX can be volatile so I am suggesting small positions to limit our risk. We'll use a trigger at $82.25 to buy calls, which is just above the exponential 200-dma. If triggered our target is $89.75.

Trigger @ 82.25

- Suggested Positions -

buy the DEC $85 call (NFLX1222L85) current ask $4.30

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 6.5 million
Listed on November 15, 2012