'Options Action' Traders Weigh In On Netflix

On CNBC's "Options Action," Mike Khouw said he doesn't know if renewed COVID-19 restrictions are going to result in new subscriptions for Netflix Inc NFLX. It has the same volatility dynamic as other stocks, but yet there is no catalyst.

Khouw advised a viewer who is considering a long position in the name to go out to February to buy calls because that expiry captures the next earnings results. He would then sell the November calls against the long call position and he would keep doing that.

Tony Zhang is not bullish on the stock, but he thinks Khouw's trade makes sense for traders who are looking for a longer-term range bound trade.

Carter Worth believes the risk is on the downside. The stock has been range bound and there is a risk it could break out on the downside.