Well awhile back I put in what I thought was an impossibly low order in for Netflix. It's 52 week high is over $700 and was $600 in January. Order filled at $200 today. Bargain or mistake who knows only time will tell.
Just a guess on that tipranks analysis. Basic technical stuff using a 50% retrace of the double top high at $400 into last gap down drop, gets you to around $300, filling most of the gap. Will it fill that gap? Who knows.
If you want to reduce risk a bit and have 100 shares, sell out of the money calls against the position. Cost basis reduction approach. Good if you have a longer term outlook. About 30 days out a 220 call is selling for right at $5.10 or $510. If it stays below 220, you collect the $510. If it goes above 220 at expiration, you get 510 + 2000 in profit. It locks you out of a big run up, but that is the trade off for collecting the call premium. Hitting the strike and called away nets a 12.5% return for 24 days. Reduces your risk from 200/share to 195ish as well. If you can rinse and repeat this without hitting the strike, it further reduces the basis of your stock.
NFLX is a wild ride right now. If it breaks this 200 level, 160 is in the cards. Appears to have levels about every $20 on the downside as support to 120-140 area.
Just more stuff to chew over.
