🚨I’ll be live at 11:30 a.m. ET with Jack🚨
 We’ll share the report with today’s top Income Harvester trades, break down our personal setups, discuss what’s moving markets and more [tap to join us for Market Masters]!
Sometimes the best teaching moments come when you’re working through a trade in real time, weighing pros and cons while the chart is right in front of you.
Netflix (NFLX) is holding a critical 61.8% Fibonacci retracement level — a spot where it could either turn and burn higher…
Or fail and drift much lower.
The stock still has to pop through the rub line — a key dynamic support or resistance my Market Roadmap line highlights as a likely turning point — and then chew through several layers of overhead resistance before any real breakout can stick.
With those hurdles in mind, the $81 level becomes the line in the sand. A sustained break below it signals a regime shift that likely opens a path toward the $50-$60 zone, so that level naturally serves as a clear stop to protect against deeper downside.
On the upside, the technical roadmap still allows for a move toward $145, even if the path is layered and choppy.
This timing also fits within a broader expectation for the indices. After a short-term pullback, the market looks positioned for another push higher into June, and NFLX could participate if buyers step in at this support zone.
The Debit Spread vs. Straight Call Dilemma
I started by looking at contracts out to January 2027, a.k.a. LEAPs. With $145 sitting roughly two standard deviations away, the market isn’t strongly pricing in a move that far. That’s why far out-of-the-money (OTM) calls can underdeliver even if the stock climbs. A $110-$130 debit spread cost around $270 but capped profit tight, and even a $30-point spread around $5 still limits upside.
Comparing that to a straight $107 call near $5 changed the math. A breakeven around $112 is reasonable, a move to $130 offers significantly more profit and a run toward $145 unlocks even better asymmetry. From a pure value standpoint, the straight call outperformed the spreads.
Then the skew came into play…
Calls were bid much richer than puts — a sign traders are willing to pay up for upside exposure. That kind of upward skew often reflects a market leaning bullish and it can precede or confirm a directional move.
When a skew gets pronounced, sometimes the cleanest play is buying shares and selling covered calls.
It takes advantage of the elevated call premium, reduces cost basis and fits traders who want participation with a steadier risk posture.
Working through these decisions live is part of true tradecraft. You process new information as it appears, evaluate multiple structures and accept when a once attractive setup becomes less compelling. Flexibility is a key trading skill. If the pricing doesn’t justify the risk, the best move can be skipping the trade altogether.
The Psychology Behind a Good Options Decision
The real edge often comes from staying adaptable and disciplined — not married to one structure or one outcome. When you let the math guide you, it becomes much easier to choose between calls, spreads, shares or simply waiting for a better moment.
Sometimes the smartest trade is the one you don’t take.
Jeffry Turnmire
Jeffry Turnmire Trading
I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!
Please check out my channel and hit that Subscribe button!
You can also follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+6TdDE7-F6GlhMmJh
Important Note: No one from the ProsperityPub team or Jeffry Turnmire Trading will ever message you directly on Telegram.
I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
\
P.S. 2 Former Hedge Fund Managers Recently Had A Private Meeting in Utah…
To give a deep dive into a brand-new way to ride billions of dollars in forced momentum on the S&P 500 each day!
