How to trade Netflix using options ahead of earnings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 30 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 72%

Breaking News: Markets News

Markets,Personal Finance,Netflix Inc

Mike Khouw discusses why traders may want to use an upside call option as a substitute for a long stock position into results right now.

Netflix earnings are out after the bell Thursday. Here's why traders may want to use an upside call option as a substitute for a long stock position into results right now. Netflix shares are up more than 35% in the past 12 months ahead of its earnings report, currently placing it about 4% from the average price target of analysts. The key question is whether the company has peaked or has room for further growth.

mountain Netflix, 5 years Additionally, a five-year chart raises concerns about a potential double top, adding another reason to consider options-based stock substitution strategies. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .

Click here for the full disclaimer.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

A market hedge if this atypical election run-up causes an S&P 500 correctionMike Khouw breaks down how to play the election uncertainty using options.
Source: CNBC - 🏆 12. / 72 Read more »

How to trade Carnival before earnings using optionsMike Khouw analyzes Carnival ahead of earnings.
Source: CNBC - 🏆 12. / 72 Read more »