On Friday's show, Dan proposed a bearish earnings trade in Netflix (NFLX). One of the big reasons Dan wanted to fade the stock was that NFLX was up bigtime since Christmas, 45% to be exact and 26% from the beginning of the year. We discussed the ins and outs of that trade and were decidedly reluctant to commit capital to the idea. Its' a good thing we did, because bears got run over even before the earnings were announced, which is today after the close). Given the price action of NFLX so far this week, it provides a number of nice lessons.
