Dan Deming's Options Trade Ahead Of Netflix's Earning

KKM Financial Managing Director Dan Deming shared with the viewers of Bloomberg Markets his options strategy in Netflix, Inc. NFLX. The company is scheduled to report earnings on Tuesday and Deming wants to use a risk-reversal strategy ahead of earnings.

He thinks there might be a little bit more downside in the name so he wants to sell a put and buy a call. With the risk-reversal strategy, he wants to take advantage of a potential down move after the earnings and a rally after that.