I’m tracking eight June 13 320 puts acquired Wednesday for 1.12, as reported by several subscribers in the chat room. A 0.50 limit stop-loss is suggested, implying $496 of theoretical risk.  My intention had been to short NFLX when the stock was relatively quiet, but we wound up putting ourselves in the path of a full-blown short-squeeze that added nearly 5% to NFLX’s valuation in a single day. There was admittedly an emotional component to my recommendation, since I regard the company as one of the most overrated of all the high-fliers. It does little good to assure you at this point that the company does indeed suck, and that those who bought shares so feverishly yesterday are going to be proven wrong wrong wrong.  They will be, of course. But at this point we’ll need to allow for the pathetic fools to be at least a little bit wronger, since there is a minor rally target at 394.75 (see  inset) that seems likely to be achieved.  If it’s any consolation, those who bought the puts we acquired for a mere $112 would have paid $1,800 apiece for them just two days earlier. _______ UPDATE (2:07 p.m. ET): The puts traded down to 0.50, stopping us out for a loss of $496.  I still regard this vehicle as an excellent high-beta vehicle for betting on a stock-market collapse. We’ll try again, but with the explicit goal of reducing risk to zero or close to it.