Netflix Inc. (NFLX)

(Top Pick Aug 10/12, Down 395.16%) He covered quickly and lost 20% himself. He used a stop loss. Company is more successful and growing users more than they thought. He re-evaluates at a 15% loss.

SHORT. (Top Pick Aug 10/12, Down 282.70%) He lost a bit of money when he got out last October. He has stop losses in place. He had concerns about competition and their subscriber base was not growing as quickly as people thought.

Has had a phenomenal move over the last little while and hit an important reversal today. From a technical standpoint, it is clearly in an upward trend, well above its 20 day moving average and is outperforming the US market. Strategy is to wait until you have a little bit of weakness.

Chart shows a big drop in 2011 but it is now starting to make a base. 200 day moving average is now very much catching up to the current price. A very strong possibility of a breakout.

Recently a number of US brokers have indicated that this has gone down too far and have started to add some value to it. Chart indicates early signs of bottoming but he would like to see a lot more. Hasn’t been around long enough for a seasonal study. If market conditions are weak between now and October, you may be able to Buy at lower than current prices. He prefers stocks that have well-defined values.

The numbers don’t make sense. $16.24 model price. They just aren’t making any money at $8 a month.

(A Top Pick April 12/11. Up 4.3%.) Naked Put.