{"id":3096,"date":"2021-05-09T10:32:24","date_gmt":"2021-05-09T02:32:24","guid":{"rendered":"http:\/\/3.68.57.190\/?p=3096"},"modified":"2025-09-29T17:30:03","modified_gmt":"2025-09-29T09:30:03","slug":"netflix-bearish-options-strategies","status":"publish","type":"post","link":"https:\/\/slashtraders.com\/en\/blog\/netflix-bearish-options-strategies\/","title":{"rendered":"Netflix Stock Is Crashing! Try These 4 Profitable Bearish Options Strategies"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Do you get nervous when a stock goes on a downward trend?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most people's reactions are usually one of the following two choices:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>One is to sell off immediately<\/li>\n\n\n\n<li>The other is to buy more to spread out the cost<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Today I'll use Netflix as an example to show you how to make a profit in a bearish market.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"cdVxIRrpL21m9zClSjPoJWKFO4Hb578efasiEhkywGguQUtnA6NXY03vBq\"><iframe title=\"4 Option Strategies to Be Profitable When the Market Crashes\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/f1RsXVHk1nY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Do You Buy a Put to Anticipate a Downward Trend?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at NFLX stock price trends, shares have fallen 10% in the two weeks since the recent Q1 earnings report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If you reference <a href=\"https:\/\/www.morningstar.com\/stocks\/xnas\/nflx\/quote\" target=\"_blank\" rel=\"noopener\">Morningstar's fair value of Netflix<\/a>, the stock is only worth $250, so we expect NFLX price to continue to drop.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Looking at the previous low of $497, we can buy a Put option at $495 to anticipate the <a href=\"https:\/\/slashtraders.com\/en\/blog\/stock-bearish-signals\/\" target=\"_blank\" rel=\"noopener\">bearish movement<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX\u80a1\u50f9\u4e0b\u8dcc-1024x576.png\" alt=\"NFLX stock is down\" class=\"wp-image-3102\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">The NFLX stock price fell 10% after Q1 earnings call.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It costs around $1185 to buy a $495 Put that expires next month.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX-put-options\u4ea4\u6613\u6210\u672c-1024x576.png\" alt=\"NFLX put options transaction costs\" class=\"wp-image-3108\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">A long Put option at $495 that expires next month costs $1185.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If the stock price drops below $495 before expiration, we can exercise the option to sell 100 shares at $495.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can make $100 for every $1 decrease in the stock price.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/Netflix-Put-option\u7684\u7372\u5229\u6a5f\u6703-1024x576.png\" alt=\"Netflix Put Option Profit Opportunity\" class=\"wp-image-3112\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">The Probability of Profit for buying a Netflix Put option is low.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">But the Probability of Profit is only 30%, so it's not a high probability trade.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If NFLX goes on a long downward trend, the maximum theoretical profit of the trade is around $48000 as the price heads toward $0. But this is unlikely to happen to a financially strong company like Netflix.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX\u8cb7put-options\u7684\u6700\u9ad8\u7372\u5229-1024x576.png\" alt=\"NFLX&#039;s Highest Profit for Buying Put Options\" class=\"wp-image-3114\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">The maximum profit of a long NFLX Put option is strike price times 100 minus the cost of trade.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">From a different perspective, if you already own NFLX stocks, buying Put options is a good way to minimise your losses in a bearish trend. You have the right to sell 100 stocks at $495 no matter how far the price falls.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Although the maximum profit of a <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noopener\">long Put<\/a> is strike price x100, but the <a href=\"https:\/\/slashtraders.com\/en\/blog\/options-value\/\" target=\"_blank\" rel=\"noopener\">cost of buying Put<\/a> is very high, and the option would expire worthless if the stock price doesn't fall.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">So we can consider a higher leverage strategy of buying a Put Calendar Spread to <a href=\"https:\/\/slashtraders.com\/en\/blog\/delta-hedging-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">profit from a market downturn<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Buy a Put Calendar Spread?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">It is more difficult to profit from a <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-calendar-spread-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">Calendar Spread<\/a> than from a long Put, because you need to be very accurate in guessing both the direction and the size of the downturn to be profitable. But the advantage of a Calendar Spread is a lower cost of trade and a higher leverage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If we look at the Netflix price chart from last year, the downward fluctuation is usually between $50-$100. So we can buy a Put Calendar Spread that is $100 below the current market price.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX\u80a1\u50f9\u4e0b\u8dcc\u7684\u5e45\u5ea6-1024x576.png\" alt=\"The extent of the decline in NFLX&#039;s share price\" class=\"wp-image-3116\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Recent downward moves for NFLX has been around $50-$100.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A bearish Calendar Spread is made up of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/cash-secured-put\/\" target=\"_blank\" rel=\"noreferrer noopener\">A short Put that expires next month<\/a>.<\/li>\n\n\n\n<li>A long Put that expires in 2 months or more.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The maximum profit occurs when the stock price falls to exactly the Strike price within a month.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN-1024x576.png\" alt=\"Netflix put calendar spread\" class=\"wp-image-3184\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN-16x9.png 16w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/10-calendar-spread-EN.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">NFLX Put Calendar Spread consists of buying and selling Put options with different expirations.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">When trading with <a href=\"https:\/\/slashtraders.com\/en\/blog\/td-ameritrade-review\/\" target=\"_blank\" rel=\"noopener\">TD Ameritrade<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Find the Puts that expire next month<\/li>\n\n\n\n<li>Right click to BUY Calendar<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/\u5728TD-Ameritrade\u8cfc\u8cb7NFLX\u65e5\u66c6\u50f9\u5dee-1024x576.png\" alt=\"Buy NFLX Calendar Spreads at TD Ameritrade\" class=\"wp-image-3120\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Right click to BUY Calendar in TD Ameritrade to buy a Put Calendar Spread that expires next month.<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Change Qty to 1<\/li>\n\n\n\n<li>Set the BUY Put to Exp next month<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX\u65e5\u66c6\u50f9\u5dee\u8a2d\u5b9a-1024x576.png\" alt=\"NFLX Calendar Spread Setting\" class=\"wp-image-3125\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Change the NFLX Calendar Spread settings.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Then we can Analyze the trade.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/Netflix\u65e5\u66c6\u50f9\u5dee\u5206\u6790\u6700\u9ad8\u7372\u5229-1024x576.png\" alt=\"Netflix Calendar Spread Analysis Top Gainers\" class=\"wp-image-3127\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">When Netflix stock price falls to the strike price, the maximum profit of Calendar Spread is 15x.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">We can see the cost of this Calendar Spread is around $90. If the stock price drops to the strike price within a month, we can make $1500, a 15x Return on Capital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But it is very difficult to pull off this trade, and you can lose the initial investment if you are wrong about the trade.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since we have covered the strategies on buying options, now we can talk about how to be the seller of options.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><a href=\"https:\/\/slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"971\" height=\"120\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png\" alt=\"slashtraders trial banner\" class=\"wp-image-7387\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png 971w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-300x37.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-768x95.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-18x2.png 18w\" sizes=\"(max-width: 971px) 100vw, 971px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How to Sell a Call?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If we believe the stock price will continue to fall, we can <a href=\"https:\/\/slashtraders.com\/en\/blog\/sell-covered-call\/\" target=\"_blank\" rel=\"noreferrer noopener\">sell a Call option<\/a> very close to the market price, at around -0.40 delta. As an option seller, we can receive the $1205 premium upfront.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/NFLX\u8ce3naked-call\u9078\u64c7\u6b0a-1024x576.png\" alt=\"NFLX sells naked call options\" class=\"wp-image-3135\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Selling a Naked Call at -0.40 delta has potential for 14% Return on Capital.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Because NFLX is an expensive, and <a href=\"https:\/\/slashtraders.com\/en\/blog\/market-volatility-hv-iv\/\" target=\"_blank\" rel=\"noreferrer noopener\">volatile stock<\/a>, the Naked Call we sell would need a buying power of over $8600. Resulting in a Return on Capital of around 14%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The analysis of this trade shows there is a 68% chance of profit after 1 month. As long as the stock price remains below our strike price, we can collect the full premium.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/Netflix-naked-call\u9078\u64c7\u6b0a\u7684\u7372\u5229\u6a5f\u6703\u9ad8-1024x576.png\" alt=\"Netflix naked call option has a high chance of being profitable\" class=\"wp-image-3137\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Selling a Naked Call has 68% Probability of Profit.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The drawback of this trade is if we are wrong about the direction of the stock price, we as the seller, will lose $100 for every $1 price increase, with a theoretical maximum loss of infinity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How do we sell options in a safe way?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Sell a Call Spread?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We can buy a Call at a higher Strike price to cap the loss of our short Call. This way, the buying power required would be reduced as well.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/Netflix\u8ce3call-spread-1024x576.png\" alt=\"Netflix sells call spread\" class=\"wp-image-3139\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Selling a Call Spread can reduce the buying power required, limit maximum loss, and increase Return on Capital.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Even though the <a href=\"https:\/\/slashtraders.com\/en\/tools\/bear-call-spread-screener\/\" target=\"_blank\" rel=\"noopener\">Call Spread<\/a> has lower premium than a Naked Call, only $175, while maintaining the same 68% chance of profit. But a lower buying power of $325 means we can have a Return on Capital of more than 54%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Comparison of 4 Bearish Options Strategies<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We discussed 4 Bearish option strategies today, and my personal favourite is <a href=\"https:\/\/slashtraders.com\/en\/blog\/bear-call-spread-delta-hedge\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling the Call Spread<\/a>. It has the highest Probability of Profit, and a great Return on Capital. As a seller, we can simply wait for the option to decay in value, then exit before the market price cross the Strike price.<\/p>\n\n\n\n<table id=\"tablepress-10\" class=\"tablepress tablepress-id-10\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Strategies<\/th><th class=\"column-2\">Pros<\/th><th class=\"column-3\">Cons<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Buy Put<\/td><td class=\"column-2 translation-block\">Easy to setup<br> Can limit the losses of holding stocks<br> High theoretical maximum profit<\/td><td class=\"column-3 translation-block\">High cost of trade<br> Low chance of profit<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Buy Put Calendar Spread<\/td><td class=\"column-2 translation-block\">Low cost of trade<br> High leverage<\/td><td class=\"column-3\">Need to be correct in both direction and magnitude<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Sell Call<\/td><td class=\"column-2 translation-block\">Receive premium first<br> High probability of profit<br> Profit by waiting for options to depreciate in value<\/td><td class=\"column-3 translation-block\">Requires high buying power<br> Unlimited maximum loss<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Sell Call Spread<\/td><td class=\"column-2 translation-block\">Receive premium first<br> High probability of profit<br> Low buying power required<br> High leverage<br> Profit by waiting for options to depreciate in value<\/td><td class=\"column-3\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-10 from cache -->\n\n\n\n<h2 class=\"wp-block-heading\">High Probability Bearish Trades Right Now<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The <a href=\"https:\/\/slashtraders.com\/en\/tools\/bear-call-spread-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bear Call Spread Screener<\/a> uses chart analysis to find overvalued stocks with a high probability of a downward correction that we can sell Bear Call Spreads to open.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We want to find heavily overvalued underlying that have a high probability of going down.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The options screener uses fundamental analysis to calculate the Fair Value of the underlying then compare that with the Last value to find the potential Upside of the stock. When the Upside is less than -30%, we have high confidence in a bearish outlook.<\/li>\n\n\n\n<li>Short Signal Price shows the topped out price from our technical analysis. So we know the stock price will not rise beyond this price in the short term.<\/li>\n\n\n\n<li>Short Days indicate the number of trading days has passed since the last short signal. As soon as the short signal appears, there is a high probability of a bearish move.<\/li>\n\n\n\n<li>We also need to avoid Ex-Dividend Date before options expiration. On one hand Ex-Dividend Date usually lead to rising prices and assignment. On the other hand, if you get assigned, you might need to pay dividends for shorting the stock.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Since we are strongly bearish about our trade, we can use -0.50 delta ATM Bear Call Spread to calculate Return on Capital. This gives us the highest return when we are right, and the lowest maximum loss if we are wrong.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So we can look at the screener for the best ATM Bear Call Spread ideas.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"354\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns-1024x354.png\" alt=\"bear call spread columns\" class=\"wp-image-7548\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns-1024x354.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns-300x104.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns-768x266.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns-18x6.png 18w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-columns.png 1121w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">We sort Upside by descending order to find the most overvalued stocks, then use Short Days to find the most recent down-trending opportunities.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">By combining Upside and Short Days, we see ENPH is one of the most overvalued stocks, and has a short signal 8 trading days ago. It doesn't have an Ex-Dividend Date coming up. So it has a high probability of a bearish trend.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"354\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener-1024x354.png\" alt=\"bear call spread screener enph\" class=\"wp-image-7553\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener-1024x354.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener-300x104.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener-768x266.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener-18x6.png 18w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/bear-call-spread-screener.png 1121w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">We combine Upside and Short Days to find the ENPH as one of the best ATM Bear Call Spreads.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at Enphase's trend, we confirm that ENPH did reach a high of $220 since 8 trading days ago, the same as the Short Signal Price mentioned in our bearish stock picker, and then ENPH stock price is on a downward slope, with a high probability that it won't go up beyond the Short Signal Price in a short period of time.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"980\" height=\"579\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-short-signal-price-trend.png\" alt=\"enph short signal price trend\" class=\"wp-image-7562\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-short-signal-price-trend.png 980w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-short-signal-price-trend-300x177.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-short-signal-price-trend-768x454.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-short-signal-price-trend-18x12.png 18w\" sizes=\"(max-width: 980px) 100vw, 980px\" \/><figcaption class=\"wp-element-caption\">ENPH reached the Short Signal Price $220 8 trading days ago, and has been bearish since.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">We can sell an ENPH ATM Call Spread option that expires in 35 days. If the ENPH stock price does not rise before expiration, we have the potential to profit 86% from the trade.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread-1024x576.png\" alt=\"enph atm bear call spread\" class=\"wp-image-7560\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread-18x10.png 18w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/08\/enph-atm-bear-call-spread.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">An ENPH ATM Call Spread option that expires in 35 days has the potential to profit 86% from the trade.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Now it's your turn to try the options trading strategies we shared today, and find your favourite bearish trading strategies.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Do you get nervous when a stock goes on a downward trend? Today I'll use Netflix as an example to show how to make a profit in a bearish market.<\/p>","protected":false},"author":1,"featured_media":3097,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[56,12,50,64,23,14,11],"class_list":["post-3096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cn","tag-en","tag-enph","tag-es","tag-nflx","tag-options","tag-tw"],"_links":{"self":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/3096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=3096"}],"version-history":[{"count":5,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/3096\/revisions"}],"predecessor-version":[{"id":13911,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/3096\/revisions\/13911"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media\/3097"}],"wp:attachment":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=3096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=3096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=3096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}