NFLX Trade on Oct 21, 2020 14:32 from Marius: Tradervue User Stock Trades.

Markets still on edge mode with covid situation, stimulus, & elections. Worth noting that from a macro perspective it looks more positive than what the media and news headlines are feeding. Currently DXY is continuing to sell on the downtrend along with bonds weak. TNX and interest rates starting to show some strength with a base. Precious metals holding up. Cryptocurrencies showing relative strength and HTF breakout on BTC to test 2019 highs. Seems a lot in play not including earnings..

This is an earnings trade. NFLX reported slowed subscriber growth and minor beats on EPS and revenues. Provided strong guidance on future content. The market did not take it well and sold it. I had a smaller long pre-positioned into earnings with the recent breakout. Wanted to see the reaction today and will be selling the position. The main trade/position was placed today as I'm short with a much larger position.

I have a losing pre-positioned trade that has more probability of now becoming a winner overall with the reverse position I just placed. Interesting to note here that this is one of the very few times that I'm doing this individually in stocks. Almost hedging the mid to longer-term portfolio position with this trade on my active trading account. Good to be open minded to enable seeing developing opportunities and just continuing to make good trades whether loss or gain.

Intraday Fundamentals

RVOL 2.77
AVOL 6.277M
ATR 19.99
Short Float 2.18%
Inst Own 82.90%
Shs Float 433.76M

Options Metrics

SI 2.388
IV 45.67%
IVP 24%
P/C Ratio 0.831
VWAP 494.818

Options Position Metrics

OI 5,658
Vol 4,060
Delta .02
Theta .12
Vega .02
Gamma .00

Noting the higher call volume pre earnings. And larger call selling on the tape (seen on next screenshot)

Tape Reading

Seeing the large call write orders at the open + bought put orders after.

Technical Analysis

Gap down below 500 and anchored vwap's from previous trades/analysis. Closed at low of the day with high volume. Momentum is very strong to the downside however approaching areas where buyers stepped in before. Anticipating a bounce and possibly sellers re-stepping in or bounce and buyers stepping up price.

Trade Review

Scalped the trade gaining 86% of the total profit from the trade overnight. Risk to gain the extra 14% holding until expiration did not make sense. The market was also showing some signs of turning the current downtrend as well with stimulus talks. This overall trade is still looking bearish considering the variables and price action of supply/demand of market participants. Mid-term position was also exited.

For a moment I had been thinking of how to get larger in these winning set-ups. Better to continue at my development pace and not force it. My trade positions are now common in the light 6 figures to half a million in some but have to keep in mind my risk while expanding and growing. There's much more to learn and I'm not there yet. Keep the account direction going up and to the right. The gains will come with consistency and hard work. Staying focused on the process.