Market Overview

Mike Khouw's Netflix Options Trade

Share:
Related NFLX
The Oprah Effect: Apple, Winfrey Sign Multiyear Programming Deal
Citron Says Netflix Bulls Need A 'Reality Check'
Game Plan For The Week - Cramer's Mad Money (6/15/18) (Seeking Alpha)

Mike Khouw spoke on CNBC's "Options Action" about an option trading strategy in Netflix, Inc. (NASDAQ: NFLX), ahead of earnings.

The company is going to report earnings on Monday and Khouw wants to sell the July 160 call for $6.45 and buy the September 160 call for $9.15. The calendar call spread would cost him $2.70. If the stock drops below $160 at the July expiration, Khouw is going to collect $6.45 and he is going to continue to own the September 160 call, with an entry price of $2.70.

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

 

Related Articles (NFLX)

View Comments and Join the Discussion!