Weeks ago, Citigroup upgraded Netflix to a Hold shortly after Credit Suisse raised price estimates from $30 to $33.
But I knew better than to listen to a bank.
Instead, on December 28, my team and I recommended buying the Netflix March 2008 25 put (QNQOE) as it traded at a paltry $1.75 on speculation that the underlying would plunge sub-$23 on technicals and Apple iTunes news.
Today, the underlying stock trades at $21.30, which brings our $1.75 put option to $5.15 – a 194% gain in just weeks.
If you followed the advice, I’d love to hear how you did. You can e-mail me directly at TheTradingPit@yahoo.com. And be sure to stay tuned for our options service coming soon.
Congratulations on an easy gain.
As Brian Hicks mentioned in today’s Wealth Daily, very soon we’ll be launching my Options Trading Pit, which will give you the opportunity to play the market at both ends . . . and everything in between. Stay tuned.
