Netflix Losing Ground (NFLX)

Shares of Netflix (NASDAQ: NFLX) have been on a tear over the last year, gaining 125% during that time. In just the last month, the stock has surged an incredible 41%. During today's session, however, the stock is coming under some pressure, losing 3.11% to $104.74. Volume in the name has been heavy, with more than 3.2 million shares already changing hands compared to a daily average of 2.26 million. The stock is now trading at a forward P/E of 30.80 according to Yahoo Finance.

During the current trading session, the Dow Jones Industrial Average has fallen 110 points to 11,094 as European sovereign debt fears are weighing on the market today. It appears that there is a chance that this weakness could continue in the coming days, as the equity indices are very overbought versus historical metrics.

Traders that are looking to establish short positions should look to names such as NFLX that have made extreme upward moves in the last few months. In order to limit risk, consider using the options market to gain the desired short exposure.