4 Trade Ideas for Netflix: Bonus Idea

• Posted by Greg Harmon
• on March 17th, 2025

Here is your Bonus Idea with links to the full Top Ten:

Netflix, $NFLX, comes into the week rounding up out of a pullback. That pullback closed the gap from the January earnings report. Since it also happened with a lower low in the RSI with a higher low in the price it triggers a Positive RSI Reversal with a target to 1100. The RSI is rising toward the midline with the MACD leveling after a reset in negative territory. There is resistance at 936 and 954 then 961 and 994 before 1003 and 1028. Support lower is at 891 and 866. Short interest is low at 1.7%.

The stock does not pay a dividend and the company is expected to report earnings next on April 16th. The March options chain shows biggest open interest at the 900 strike on the put side. On the call side it is biggest at 1000, then 870 then 900. In the April chain, covering the earnings report, open interest is spread from 880 to 800 on the put side, biggest at 850. On the call side it is focused from 990 to 1000, then 1050. Finally, the May chain has bigger chunks of open interest at the 900 and 770 put strikes, and at the 1000 call strike.

Netflix, Ticker: $NFLX

Trade Idea 1: Buy the stock on a move over 920 with a stop at 885.

Trade Idea 2: Buy the stock on a move over 920 and add an April 890/820 Put Spread ($22.45) while selling the April 975 Call ($21.40).

Trade Idea 3: Buy the March/April 950 Call Calendar ($28.50) while selling the April 830 Put ($15.00).

Trade Idea 4: Buy the May 830/920/980 Call Spread Risk Reversal (free).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the March options expiration and FOMC meeting, saw equity markets show possible exhaustion in the pullbacks of the past 4 weeks.

Elsewhere look for Gold to continue its bull run higher while Crude Oil consolidates at the bottom of a broad range. The US Dollar Index continues pullback in the consolidation zone while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue in consolidation in the uptrend while Emerging Markets chop sideways in consolidation.

The Volatility Index looks to remain elevated but moving lower making the path easier for equity markets to the upside. Their charts have now experienced some damage on the longer timeframe but remain long term bullish. On the shorter timeframe both the QQQ and SPY have found support at key levels that could lead to a reversal. Let’s wait for proof before acting. The IWM is broken on the shorter timeframe and hanging on in the longer timeframe. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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