Top Trade Ideas for the Week of February 10, 2014: Bonus Idea

• Posted by Greg Harmon
• on February 10th, 2014

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

Netflix, Ticker: $NFLX

Netflix, $NFLX, broke a consolidation range on Friday and is heading higher. The Measured Move on the daily chart takes it to about 470 and it has support for more upside from the bullish RSI and rising MACD. But the story gets more interesting on a look at the monthly chart as 460 is a 161.8% extension of the pullback from the high in 2011 to the low in late 2012. There is no resistance higher and support comes below at 410 and 400 followed by 380 and 328.

Trade Idea 1: Buy the stock (over 420) with a stop at 410.

Trade Idea 2: Buy the February 435 Calls (offered at $8.80 late Friday).

Trade Idea 3: Buy the March 435/February 28 455 Call Diagonal ($13.35, buy March and Sell February 28).

Trade Idea 4: Buy the February 28 435/440 Call Spread and sell the February 28 380 Put ($1.05).

Trade Idea 5: Buy the March 435/445 Call Spread ($4.65) and sell the March 380/370 Put Spread ($1.05) and or March 455/460 Call Spread ($1.20).

Premium Content
The Best

The Rest Premium

Free Content
The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.

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 next week sees the markets are giving a sigh of relief but not as strong as they could be. Look for Gold to continue to consolidate with a slight upward bias while Crude Oil continues higher. The US Dollar Index seems content to continue to move sideways while US Treasuries are biased higher in the very short term in their broad consolidation. The Shanghai Composite and Emerging Markets are biased to the upside with the Emerging Markets warranting some caution initially. Volatility looks to remain subdued and biased lower adding a breeze to the backs of the equity index ETF’s SPY, IWM and QQQ. Their charts show a desire for some short term caution to prove the recent moves hold, although the tone is bullish. The QQQ looks the strongest followed by the SPY and then the IWM. Use this information as you prepare for the coming week and trad’em well.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through January 2014 Expiry and sign up here for the free 7 day trial before you pay.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus