NFLX August 125 Short Call STOPPED OUT @ $3.85 DEBIT.
NFLX August 130 Long Call SOLD to Close for $2.12 CREDIT.
NET DEBIT $1.73
Today we got caught in an extreme example of a classic short squeeze propelled by additional buyer interest in the Netflix deal with MGM.
It also explains why you must either have stops in place or strike prices that are less than 5 points apart.
Annoucement below that may have been the beginning of the end for the shorts
this morning in NFLX.
See annoucement below
7:01AM Netflix and EPIX announce exclusive internet-only deal to instantly stream EPIX movies to Netflix members (NFLX) 116.90 : EPIX and NFLX announce an agreement through which Netflix members can instantly watch an array of new releases and library titles from EPIX streamed over the Internet from Netflix. Movies from the multi-year deal will begin streaming from Netflix on September 1 and include movies from Paramount, Lionsgate and M.G.M.