Netflix Hits New All-Time High! NFLX, OUTR, TWC, CMCSA

NFLX shares popped above $600 last Friday after the company was reportedly engaging in talks to expand into China.  We jumped into NFLX June calls on Friday morning.  We first played it safe, going with June calls.  But, as NFLX blasted through $610, I realized that there was much more to go.  So, I cashed out the June calls and switched to May 22 weekly calls to make a higher leverage trade:

We patiently sat through the volatility on Monday, with NFLX down in the red most of the morning.  But, those calls were not moving very well, and the premium was disappearing too fast.  So, as NFLX traded higher in the afternoon, I switched again from the May 22 weekly calls to the May 29 weekly calls to give us more time.

This morning, NFLX jumped another $10 and it was the jump that I was looking for.  We cashed out the May 29 calls for some nice overnight profits:

The 3 trades (4 exits) netted us almost $6,000 in 2 days!  They also helped to boost the value of the Ecstatic Plays Portfolio to a new all-time high!

Lately, it seems like it does not matter if the company is streaming video, renting DVDs, or providing cable, this space is hot!  

Outerwall, Inc (OUTR), whose subsidiary Redbox runs DVD renting kiosks, has been trading very strongly after its recent earnings beat.  This evening, TWC jumped over $2 after the company received a takeover approach from the French telecommunications group Altice SA.  Recently, a possible merger between TWC and CMCSA had just fell apart.  We could see a breakout in TWC tomorrow!

Good night and HappyTrading! ™

Posted to Ecstatic Plays on May 20, 2015 — 12:05 AM
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