Options Trade Of The Day: Netflix (NFLX) earnings due, buy $595 put for October 22
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UNLOCK OFFERGoing with a controversial call here, but the risk reward in our view is skewed to the downside ahead of Netflix (NFLX) earnings tomorrow. Just to recap, EPS is expected to come in at $2.57 with revenue expected at $7.48 billion. Netflix stock (NFLX) has been on a charge on the back of Squid Game. We feel there will be a lag from the success of this into revenue and subscriber numbers. The stock has been on a huge run, and it will need a huge beat to maintain that run. Therefore, the risk reward is skewed to the downside. If earnings disappoint, Netflix has plenty of room to fall back to summer levels.
Buying a $595 put for October 22 costs about $5.60 per share based on Friday's close. Each option contract is for 100 shares.
Going with a controversial call here, but the risk reward in our view is skewed to the downside ahead of Netflix (NFLX) earnings tomorrow. Just to recap, EPS is expected to come in at $2.57 with revenue expected at $7.48 billion. Netflix stock (NFLX) has been on a charge on the back of Squid Game. We feel there will be a lag from the success of this into revenue and subscriber numbers. The stock has been on a huge run, and it will need a huge beat to maintain that run. Therefore, the risk reward is skewed to the downside. If earnings disappoint, Netflix has plenty of room to fall back to summer levels.
Buying a $595 put for October 22 costs about $5.60 per share based on Friday's close. Each option contract is for 100 shares.
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