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Google and Netflix add a small country GDP in one day
Old 07-17-2015, 03:15 PM   #1
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Google and Netflix add a small country GDP in one day

Total value added to just those two stocks was something around $60B in one day.

Maybe Google deserved it, but the jury is out on Netflix.

I really could not fault anyone for taking money out of this market...I just don't know where to tell them to put it.
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Old 07-17-2015, 03:21 PM   #2
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I've been in GOOG and GOOGL for 3 years, I'm not planning on moving anytime soon. I don't feel as comfortable with Netflix, I don't it understand enough to put my money there outside of funds.
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Old 07-17-2015, 05:22 PM   #3
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Holy upside, batman.

That's a 16% jump for beating analyst expectations by almost 4%.

Still not a full Greece bailout though, but getting closer
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Old 07-17-2015, 05:43 PM   #4
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I really missed the boat on Netflix

But i'm not getting in now. I'm already in Tesla and one overvalued, risky stock is enough for me.
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Old 07-17-2015, 05:48 PM   #5
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They would have expired by now, but back when Netflix had fallen to $70 (when the CEO tried to raise prices), I bought 80 LEAP call options at $90 strike. That represents 8000 shares and would be worth $5.6 million today. I sold a bit early since I think I only made about $1500 on the trade
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Old 07-17-2015, 07:08 PM   #6
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It's a while since I bought any LEAP. I never bought that many options, and then quite a few of them expired worthless. So, I was saved from agonizing over the money I could have had if I did not sell early.
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Old 07-17-2015, 08:22 PM   #7
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Yes, it was an overly large purchase for me, part of a calendar spread I did because I thought Netflix was oversold. I guess it turned out Netflix *was* oversold by about 1000% but because I had so much money in it I only got about 2% of the gain before I got scared of losses.
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Old 07-17-2015, 09:05 PM   #8
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The last 3 earnings cycles for Google, the stock jumped and then retraced the entire move back down within a couple weeks. Time to short Google.
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Old 07-20-2015, 09:07 AM   #9
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The real value play in both of these issues is probably calendar spreads at this point. That or more likely bear PUT spreads if you feel the stock will fall; in either case, you hedge your risk in exchange for a portion of the potential profit -- but of course cap your loss (in the case of the PUT spread) or your cost (in the case of the calendar call spread).

Given the prices, derivatives on these (and others, incl PCLN, etc.) are often a good approach IMO
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Old 07-20-2015, 10:10 AM   #10
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Yes, I do like me some calendar spreads. On Netflix I would probably do something like buy the Sept $120 puts and sell the August $115 puts for around $3 total.

Really far out puts, like 2016 are very expensive....makes you think there is not a lot of faith in $840 Netflix.
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