Steve Sosnick's Bearish Netflix Trade

Steve Sosnick of Interactive Brokers spoke on Bloomberg Markets about an options trade in Netflix, Inc. NFLX.

The stock bounced off its 100-day moving average on Thursday, but Sosnick thinks it could continue to trade lower. He wants to use options to make a bearish trade and he believes that it would be a good idea to buy the June 145/140 put spread for $1.45. The trade breaks even at 143.55 or 5.41 percent below the current stock price. It can maximally make a profit of $3.55.