Chris Fernandez

Netflix: Cover Alert on Short Position

Hey Tangle,

My appreciation for streaming costs are NOT related to the actual bandwidth being purchased and used by NFLX, but rather by the renegotiations that they are going to have to go through with the studios, thus raising their cost to deliver streamed content.

If you already look Netflix does not offer all of their available movies for streaming to everyone.

I'll give you an example: I subscribe to the cheapest plan, 2 DVD's per month, 1 out at a time.

I am able to stream a bunch of TV shows and movies to my computer (not TV since I need at least the $9.99 plan I believe for that), but some of the movies that it says I am able to stream, I actually can't because my plan "does not allow for that movie to be streamed" as Netflix puts it.

Think about it this way: If NFLX is already curtailing "unlimited" streaming because of higher costs for certain movies forced upon them by the studios, what's going to happen when those are raised further in the future for better movies, or even for older titles?

Yep, costs will rise, margins will fall, and NFLX will look much less appealing not only to us as investors, but more so to the actual customers who are going to get tired of being nickle and dimed to death for higher programing costs, and less content.

Chris

Netflix: Cover Alert on Short Position

Didn't lose anything on the trade, that's the whole point.

With the market the way it is, it's just not the right time to short, unless you are super willing to give the stock 10% or so run on the downside and be able to hang on with the vacilations.

I was not, and took my money off the table even.

Longer term, as I already expressed, I think we'll see more downside.

Chris

Netflix: Short Opportunity

Methos,

We'll see...if you notice today, NFLX was weak in a strong upward market...overall market gains were 3-4%, NFLX was flat in low volume...on the downside, it has been down on huge volume, plus the breakdown through key technical levels.

This is merely a trade, for a few days or weeks, but nonetheless, I like my risk/reward, and have a nice tight stop on the order to break even, as the stock has already fallen enough for me to do so.

We'll see how this plays out.

Chris

Netflix: Short Opportunity

Nettigent,

Thanks for the tickers...it looks like my Netflix short might be coming to an end, since I moved my stop to break even, and it's about to trigger.

I still believe lower days are ahead, but timing is critical....

Stay tuned to my Twitter feed for real time trades.

twitter.com/PeakStocks

Chris

Rick's and Netflix: A Time to Buy, A Time to Short?

Missing_Link,

I agree 100%...I shorted NFLX today as well, and in fact since SA posts my stuff a day later, if you are interested in following my picks live, you can get real time updates by subscribing to my Twitter Feed here:

twitter.com/PeakStocks

Thanks for reading, and happy trading!

Chris

Rick's and Netflix: A Time to Buy, A Time to Short?

Hey Dicki,

For every trade there is a buyer and a seller...both think they are right, and in the short term, both can be right.

I am looking at short term only.

NFLX will most likely fall some here, we can make a quick 5-10% on our money, and get out. My stop loss is about 5%, so the risk/reward is vastly in our favor all things considered.

Indeed time will tell!

Chris