My Next Option Trading Idea - NFLX

This is my next option trading strategy…

Align S&P500 1320 level with NFLX at $240 level. If NFLX is trading at or above $240 as S&P500 hits 1320 level today, then I plan to buy PUT Option for NFLX ($220 Target for May) and ride down towards $230. Sell once it reaches $230 level. When NFLX reached $240 range earlier this year, it tanked below $200. I think it will take a similar course again but this time it will not fall as steep as before. Maybe $220 level…

Keep in mind that you have to know when to exit your position if it does not work out the way you expected. I recommend selling immediately if S&P500 continues to go higher... Once it crosses $1325, I take it as a sign to exit your position even though it could be a "BULL TRAP".

UPDATED COB 3/29/11:
The way the stock market closed today near 1320 for S&P500, I think it will be a great time to short next couple of days.  I was hoping that NFLX would close near $240 but it only made it to $237.  I would buy PUT Option for NFLX tomorrow AM (wait until at least 9:50am or so) if the market opens slightly higher.  If it opens much higher, then all bets are off...  If it opens lower then I would wait for it to come back to 1320 level again before entering PUT position.

By the way, did anyone buy PUT Option for TM recently?  It should continue to decline...

Video on Potential Direction of Market Last Week of March

Last week, we experienced a great run higher after the disaster in Japan several weeks ago.  Will the stock market run out of steam this week?  Check out potential trading strategy in USO, as it may go down this week causing the stock market to continue to move higher...  Would you consider PUT Option in USO this week?  Check out this video and form your own opinion.

Here is my recommendation on trading Options for Monday, March 28:
  • Buy PUT Option for USO as there is potential for it to decline this week.
  • Buy CALL Options on high volume stocks such as GOOG, AAPL, NFLX.
For both of these trades, your exit strategy would be to sell Options as S&P500 reaches 1330 level.
If stock market heads lower instead of higher tomorrow, then wait to buy any Option until S&P500 reaches 1295-1300.  Obviously you would buy CALLs at that level.

Two Stocks With Great Returns in 2011

Two stocks that have the potential for great returns this year...  Watch this video to find out which two stocks.

It also discusses target levels where you should be exiting the position.  Let me know your thoughts on these two stocks and whether you have made profits later...

GOLD & SILVER are HOT Commodity

MarcketClub has posted a new video on Gold today.  It looks like Gold is header into $1700 per ounce by end of September.  Good time to go long now...  Also, check out Silver!