The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Netflix stock. Netflix was one of the best-performing stocks over the past decade but has experienced high volatility on pullbacks. Coupled with recent competition and relative underperformance, another selloff is likely. Expecting NFLX to trade lower, Michael Khouw suggests buying a June 340/300 Put Vertical for an $11.50 Debit. As of Friday’s close, these puts were trading at an $11.30 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: NFLX Options Action Video
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