NETFLIX INC ranked among the worst performers today. It lost -5.45% to close at 270.6. It's recent 5 day performance has been -1.33%, +1.16%, -2.61%, +0.11% and -3.1%.
NFLX is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for NFLX's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -17.43%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to NFLX.
NFLX returned losses on 57% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's worst daily return of -9.4%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 20 Aug, 2018 and went on till 22 Aug, 2018. The bullish trend returned +5.04% to investors. This was followed by a bearish trend that started on 2 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -8.71% of investor capital.
NFLX had 9 profitable and 3 loss making months over the last year. NFLX was profitable in more months than SP500 index. NFLX significantly outperformed SP500 index in Jan 2018, when it returned +34.43% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NFLX had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Dec 2017 to Jun 2018) during which period it delivered +81.27%.
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NFLX is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in NFLX's volatility from 20 Aug, 2018 to 3 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 20 Aug, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that NFLX has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in NFLX derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.
On a general note (since you are interested in NFLX), UNH is a large cap that deserves to be closely tracked for investment opportunities.
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