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 Discovery
While 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 Works
This 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.
The Technical Picture
Netflix held this support area through all the recent market weakness. The daily squeeze momentum is shifting positive.
The volume profile shows a point of control right where we need it.
This isn’t a home run swing at a momentum stock that’s already extended. This is positioning ahead of a known catalyst with clear technical levels to guide risk.
The Split Factor
Netflix will go from trading around $1,100 to roughly $110 after the 10-for-1 split. New price point, renewed interest, options market adjustments.
It’s not about the split creating fundamental value. It’s about positioning for the technical and psychological momentum that typically follows.
Your Action Plan
Watch 1105. That’s the line in the sand. Above that level, and this trade has legs. Below it, and you wait for a better entry or move on to the next idea.
Netflix fits that description perfectly right now.
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