Hubert Senters here.
I want to do a follow-up on yesterday’s video. We were talking about a Netflix potential bracket trade. I just want to make sure that I’m crystal clear on the explanation that I did not confuse you because I felt like I might have confused you a couple of yesterday.
Here is today’s action and right now it’s 4:09 so the futures are still trading a little bit. Here’s how you do this bracket trade so obviously Netflix a lot of people in the street did not lack their earnings.
We don’t really care about that stuff. We just want to know is the thing going to go up or is it going to go down. It’s going to go up or going to get long, it’s going to go down we’re going to get short or we’re going to sell the thing.
So here’s the bracket set-up. The high today was about $503.46 and the low for Friday was around $484.56. Now on Monday you have to decide if you’re going long or short. If you’re not sure what you can do is just do a bracket trade above $503.46 will be a long.
Now, you have to decide. Is it going to be a touch just one trade above that? Or do you want to close above it? Each one of them has their pluses and their minuses. The plus you get in a little bit quicker. The minus you might get stopped.
So it depends what you’re going to do. A trade at $503.46 or a close above. A trade would just be $503.46. A close above would mean that you’d have to have a candle stick that actually closed up above that line.
And you do the reverse to the downside so a short would be a trade below $484.56 or a close below. Use whatever stop you’re comfortable using and that’s how you do a bracket trade.
Hubert.
