As you can see from the image below $NFLX was holding $250 per share well yesterday and this morning
When day trading we refer to our day trading strategies and always try and buy the best risk to reward trading setups
Today we were risking approximately $0.55 to make $2.50 per share for our first target, then our next level of resistance was $55.03 which gave us our next target of +5$ per share, risking only $0.55 per share! above! We followed our risk management and 3-points of interest, technical analysis system.Allowing us a low risk high reward trading setup.
At this time we needed to find correlation ....
Ontop of finding correctional with $SPY and $QQQ we have found that $NFLX and $FB typically want to trade together.
As you can see below $FB was selling, not a good sign for us to want to go long $NFLX call options... But we knew that around $188 per share there was Money, "institutional money" sitting there from yesterday. At this time we had a 1/2 size starter position on $NFLX with close eyes to what Facebook shares were going to do next... Then needed to build $188 to provide influence to $NFLX. It did just that! Big money showed us their bluff, knowing they were going to by shares to keep there $188 share position profitable we only knew $NFLX holding support was ready for take-off!
Watch this trade recap to thoroughly understand our day trading strategy on $NFLX call options
This post first appeared on Why Should I Invest In The Stock Market?, please read the originial post: here
