RJ Hamster
The Split Play Setting Up While Markets Tank
“The daily momentum squeeze is starting to shift. Netflix has been building this base for weeks, holding key support levels even when the broader market wanted to roll over.”Nate Bear, Lead Technical Tactician, Monument Traders Alliance Friday was one of those brutal morning sessions where nothing wanted to work. The indexes were heavy, risk-off sentiment everywhere, and most names just got dragged lower.The Real-Time DiscoveryWhile scanning through charts Friday morning, Netflix caught my attention.Not because it was ripping higher — it wasn’t.It was actually getting pressured along with everything else. But here’s what made me stop:The daily momentum squeeze is starting to shift.Netflix has been building this base for weeks, holding key support levels even when the broader market wanted to roll over.And then I remembered — this thing has a 10-for-1 split coming November 17th.Why This Setup WorksThis is what I did on Friday: bought the November 21st 1175/1200 call debit spread for $3.Risk: $300. Max gain: $2,200 if Netflix closes over $1,200 at expiration.The key level I’m watching? 1105. If Netflix can break above that level, it opens the door to the 1135 area, which is right where it was trading after the split announcement. Beyond that, there’s significant room to run.To unsubscribe from Trade of the Day Wake-Up Watchlist, click here. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Trade of the Day | 14 West Mount Vernon Place | Baltimore, MD 21201 North America: 800.507.1399 | International: +1.443.353.4977 Website | Privacy Policy Keep the emails you value from falling into your spam folder. Whitelist Trade of the Day. © 2025 Monument Traders Alliance, LLC | All Rights Reserved Nothing published by Monument Traders Alliance should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by Monument Traders Alliance should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Monument Traders Alliance, LLC, 14 West Mount Vernon Place, Baltimore, MD 21201. |
“The daily momentum squeeze is starting to shift. Netflix has been building this base for weeks, holding key support levels even when the broader market wanted to roll over.”Nate Bear, Lead Technical Tactician, Monument Traders Alliance
Friday was one of those brutal morning sessions where nothing wanted to work. The indexes were heavy, risk-off sentiment everywhere, and most names just got dragged lower.The Real-Time DiscoveryWhile scanning through charts Friday morning, Netflix caught my attention.Not because it was ripping higher — it wasn’t.It was actually getting pressured along with everything else. But here’s what made me stop:The daily momentum squeeze is starting to shift.Netflix has been building this base for weeks, holding key support levels even when the broader market wanted to roll over.And then I remembered — this thing has a 10-for-1 split coming November 17th.Why This Setup WorksThis is what I did on Friday: bought the November 21st 1175/1200 call debit spread for $3.Risk: $300. Max gain: $2,200 if Netflix closes over $1,200 at expiration.The key level I’m watching? 1105. If Netflix can break above that level, it opens the door to the 1135 area, which is right where it was trading after the split announcement. Beyond that, there’s significant room to run.