Net-flix off the Bears

Wow what a stock.  I can’t help but noticed how overbought this company is, but then again, it’s been ripping apart the shorts for over a year now.  This stock is a good example of how overbought indicators do not always work.  Would I buy here?  H-no.  This one is easy to play:

 

 

1)  long now

2) OTM-PUTS 3-6 months out

Then you can get fancy buy playing what I call the timed-bearish-put-strangle.  That means given a principle investment =x, buy .75x of puts now, and .25x of calls on the next major pullback.  I love this play, and it rarely occurs.  It’s like losing money to make more money.  I’ll create the strategy and post some feedback over on The PPT.

Meanwhile, my other retail pick, JCG, had a great conference call, but it looks like it is pulling back here.  Let’s watch this for a while.  Keep a sharp eye on those retailers.  They have been oddly bullish during an economic downturn. 

The Dress Barn, Inc. [[dbrn]]

Ross Stores, Inc. [[rost]]

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[[gpe]]

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