On Friday’s CNBC’s Options Action, the crew analyzed the performance of Netflix stock. Netflix has outperformed the market and most of its peers over the past year. Netflix is currently trading near the midpoint of a bullish channel and reports earnings on Oct 16th. Coupled with strong subscriber growth this past year, the team expects Netflix to beat on earnings. Expecting a move higher, Michael Khouw suggested buying a Nov 170/190/200 Call Risk Reversal for a $0.25 Credit.
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