Tim Biggam's Netflix Trade

He said the stock is trading on its lowest level of historical volatility this year, and implied volatility is also approaching its lowest levels. He believes at some point there is going to be an increase in volatility in Netflix. The stock is now trading close to $100, and Biggam explained it tends to make big breakouts when it breaks a significant resistance.

He wants to buy the buy the September 30, 97.50 strike call and buy the September 30, 97.50 strike put for a total cost of $6.10. The straddle is going to make money if the stock jumps above $103.60 or drops below $91.40. Netflix has to make a move of 6.1 percent for Biggam to make money on this trade.