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Netflix And It's Ten For One Reverse Stock Split

No longer is Netflix a $1,000 stock. Now the common man can buy it. That's the new logic. Today Netflix is now trading after a "ten-for-one-reverse-stock-split". Netflix was up $8.51 last week when it was trading at it's old level of over $1,000 per share. Perhaps the street was buying in last week on the hopes that a new wave of buyers will be buying in at this weeks newly adjusted price. Now this, it's five day chart. Now this weeks Call and Put options an hour or so into the opening markets.. Whatever happens it's not going to be a comfortable ride. Maybe it could go both ways. Now it's end of day readings. ..... ..... Here is how the markets closed the day. The now current question is which way will this stock trade on an upward day? One unusual factor is that the open interest in the Puts far outweighs the open interest in the Calls. To me that's counter intuitive. To me that looks like trap for all the Put holders. Usually there are more Cal...
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A Follow Up to A March 29th Blog About Options in the $5.00 and $10.00 Range.

 First, look at how these three stocks are popping this morning when the overall markets are trading down. Options on stocks in the $5.00 and $10.00 range can surprise.

Here is todays action, a Monday morning in the first hour of trading.



All three of these companies operating in the same space are jumping in unison. Now look at this printout of my May 28th blog.


Well back then I was talking about the power of long tern options and I used the example of a "Unusual Machine" Nov 21st Call with a five dollar striking price. Now here we are only a few days later and look at where this series of Call options are now trading.

Note the open interest in these Calls have decreased as earlier traders have taken their profits and run. Once again,  longer term options on $5.00 and $10.00 stocks can surprise.  All three of these companies don't really have the earnings to support these prices  so options on them are dangerous. Why not do you homework and make lists of stocks in this price range which have options on them? 

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