Sean Seshadri Trading News http://seantradingnews.com/
Bearish moves on a rise in the broad markets • Even thought the market was up triple digits today, Sean Seshadri states that you should not be so biased to one side and one should put on bearish trades, and there were a few that worked very well today.
NFLX which moved up sharply the last few days when the market moved lower moved in the opposite direction.
It went down while the broad markets had a strong day. NFLX reached a high of 140.90, but closed at a low of 132.97. • Lux Investments suggests that put options can reduce a traders risk rather than shorting a stock and would have made a higher return than shorting the stock.
As you can see above the 135 put option made a return of 60% in a day which is remarkable as the stock moved lower. • Sean Seshadri has mentioned in previously that weakness that educational stocks have been under pressure of late