Current bias for
NFLX is bearish and if not for the June rate hike decision next week I would be looking
for a swing Short entry at/near 99.85-100.65 zone which includes weekly value resistance;
until back in weekly value/+100.65 odds are in favor for NFLX heading to
94.25 and possibly 93.05-92.35 zone as well.
Normally trading/holding below weekly value is a no brainier for me to look for Short trade entries but with the June rate decision next week (which will be an absolute game changer for both sides) I am forced to engage in a Strangle strategy rather than a naked Short trade.
As long as NFLX holds within the 98.60-96.80 range today/tomorrow I will most likely engage in a new NFLX Strangle with a September expiration; very possible for me to do so by day’s end today (June 9th). If so I will then be looking for a breach above 101s/102s or a breach below 90s/89s following the June FOMC rate decision.
Ethan PremockFutures & Options
Strategist Hamzei Anlytics, LLC