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Trade Updates: Netflix & General Growth

The traders are closely watching developments in two stocks, Netflix and General Growth. What’s the latest?

Netflix

Options action suggests that Netflix stock may have gone too far too fast. Pete Najarian is seeing heavy put activity in this name including a $3 million dollar bet that Netflix will fall 8% in the next month.

That may be in part because Walmart just acquired digital movie provider VuDu.

What’s the bottom line? Proceed with caution, Najarian says. It could be protective put buying but it could also signal a pullback.

General Growth

Shopping mall operator General Growth Properties reached a deal with Brookfield Asset Management that will enable the company to exit Chapter 11.

Brookfield will invest $2.5 billion in cash in exchange for General Growth shares, giving Brookfield a 30 percent stake in the Chicago-based company.

The plan also calls for the General Growth to spin off some assets as a new company. The deal requires approval by the bankruptcy court.

According to the WSJ, if General Growth splits, the larger of the companies will retain the General Growth Properties name and will hold 170 to 180 of the company's more than 200 malls.

The smaller company, called General Growth Opportunities, would include many of General Growth's less valuable assets including residential-development division, parcels of raw land and its headquarters building in Chicago.

What do you think? We want to hear from you!


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Trader disclosure: On February 24th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kaminsky Owns (EPV); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Pete Najarian Owns (CMC) Call Spread; Pete Najarian Owns (NFLX) Put Spread; Terranova Owns (IBM), (QCOM), (GOOG), (EMC), (AAPL), (DELL), (MSFT); Terranova Is Long April Crude Oil Futures; Terranova Owns (GLD) March Puts; Terranova Is Long Dec. 2010 Crude Oil Futures; Seymour Owns (X); Kelly Owns (HOV) Calls; Kelly Owns (FXE) Puts
Kelly Owns (HOV) Calls; Kelly Owns (AMZN) Calls; Kelly Owns (FXE) Puts’ Kelly Owns (ELX) Call; Kelly Owns (QLGC) Calls; Finerman's Firm Is Long S&P Puts; Finerman Owns (TM); Finerman's Firm And Finerman Own (CVS); Jon Najarian Owns (CROX), (CROX) Calls

For Tim Seymour:
Seygem Asset Management Owns (FCX) Puts
Seygem Asset Management Owns (POT) Calls

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Brian Kelly:
Kanundrum Capital Owns (C)
Kanundrum Capital Owns (JPM)
Kanundrum Capital Is Short March Copper Futures
Kanundrum Capital Is Short July Copper Futures
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Japanese Yen
Kanundrum Capital Is Short Singapore Dollar
Kanundrum Capital Is Short British Pound
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short U.S. Treasuries
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (GDXJ)
Kanundrum Capital Owns (HOV)
Kanundrum Capital Owns (PHM)
Kanundrum Capital Owns (TOL)
Kanundrum Capital Owns (ELX)
Kanundrum Capital Owns (QLGC)
Kanundrum Capital Owns (VMW)
Kanundrum Capital Owns (EMC)
Kanundrum Capital Owns (EWP)
Kanundrum Capital Owns (NBG)
Kanundrum Capital Is Short (GRMN)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short (TAO)


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