TheOptionPlayer.com executed the Netflix, Inc. (NasdaqGS: NFLX) short-term August 31st expiration (29-day) option strategy. Confirmation information is displayed directly below. Login in with a Premium Subscription to view data/images
Why we recommend it:
The difference between funds paid out and received is a $3.05 per share debit maximum for this trade. The maximum profit is approximately $6.95 per share (approx. 225%) if the Netflix, Inc. stock moves higher prior to the option contract expiration date. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
• As evident in the chart below, Netflix shares got trounced after their recent quarterly earnings announcement.
• Several other so-called FAANG stocks sold off after earnings announcements. These shares have been stellar performers all year and the recent correction should be considered a temporary setback.
• For the past several years price dips in technology stocks have been buying opportunities.
• In the chart below Netflix stock has stabilized at a support level and is grossly oversold.
• Technically, downward momentum has dissipated and shares are setting up for a recovery bounce.
• The published trade selected strike prices to minimize the amount of funds at risk.
52-Week High: $164.63
52-Week Low: $423.21