Option Strategies: NFLX
Hello everyone! Today i want to share some option strategies with you!
1.
Pre-earnings trade idea on: $Netflix(NFLX)$
Earnings date: Tuesday, Jan 21 after market close Expected move: Average of past earnings moves is ~8%, with this earnings move being pegged at ~8%
Trade Idea:
▫️ Sell-to-open a cash-secured put, Jan 24 expiration, targeting strikes in the 700-750 range
Points to Consider:
▫️ Expected move places downside target around 792, and 2X the expected move places it in the 720-725 range
▫️ Strongest gamma levels at 835, 840, 880, 900
▫️ 200 EMA around 732
▫️ Volume point-of-control around 750
▫️ Small gap at 704
Post Trade Actions:
▫️ We are selling a CSP for potential assignment. If you are trading naked and don't want shares, then either close the put for a loss or roll down-and-out if the strike is breached.
*note: price levels may change based on Tuesday's price action
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