NFLX getting humbled once again

[asonisgeyo]

What do puts mean? Humbled?

[atebizo]

Sorry; Puts are like shorting stocks, except it's done with Options. You buy Puts anticipating a stock price will go down. If it does, you profit. Calls are like going long on stock, hoping it will go up.

Humbled because in September Netflix made a dumb announcement that caused their stock to dive from more than $300/share to below $66 over the course of a few months. It dropped more than $100/share in 2 days.

Now that there are serious competitors to Netflix, as I expected, the reality of Netflix's limitations and false inflation of the stock are coming true again. I'm guessing it will be back down to $66 within a month or two.

[AthenaFamn]

Oh I see. Thanks! I am currently reading about options and I just came across calls and puts. Making more sense now.

[atsahqin01]

Yeah, might be rolling over now, but I would not be trading it on the downside myself. It's fairly strong fundamentally. It popped on the last earnings, hasn't really filled the gap yet. Could be a long play soon.