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Mike Khouw's Netflix Options Trade

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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: Mike Khouw Options ActionCNBC Options Markets Media


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