Let me say from the outset that I don’t think Netflix (NASDAQ:NFLX) is headed for any big fall from grace. It has been one of the most annoyingly strong stocks, similar to Amazon (NASDAQ:AMZN), in existence. I will say, however, that I think a clean little H&S pattern is in formation, and I’ve secured September $425 puts on NFLX, since I think the measured move (dashed line) is well out of the range of what the options market anticipates (price cone).

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