Core Viewpoint - Netflix has experienced a significant decline in its stock price, entering bear market territory for the first time in over five years, while the overall streaming sector shows mixed performance with Warner Brothers Discovery as a standout performer [2][9]. Company Performance - Over the past year, Netflix's stock has increased by approximately 14%, slightly outperforming the S&P 500, which is up about 12.5% [2]. - The stock has been on a downward trend, with a recent dip of 4.9% attributed to breaking news regarding an offer [3][9]. Technical Analysis - Key support levels for Netflix are identified at 102.03 and 100, with resistance levels around 108 and 116 [4]. - The 5-day EMA is crossing below slower moving averages, indicating further trend degradation, and the stock has broken below the yearly 251-day EMA [5]. - The RSI is in bearish territory, suggesting a potential breakout could lead to price confirmation [6]. Trading Strategy - A bullish call diagonal strategy is proposed as a stock replacement approach, utilizing a January 100 strike call option and selling a December 110 strike call [12]. - The strategy aims for moderate gains, with a break-even point above approximately 105, and a risk of about $650 per share if the stock opens at around $104 [13][14].