Aug. 9 at 1:01 PM
$NFLX
For example, the Sept. 11 expiry put option chain shows that the
$70.00 strike price has a midpoint premium of
$1.44.
That means an investor can make
$144 over the next month by posting
$7,000 in collateral and entering an order to "Sell to Open" a put at the
$70.00 strike price.
This works out to a one-month yield of 2.057% (i.e.,
$144/
$7,000). Moreover, the distance from the trading price is similar (-5.01%), and the delta ratio is similarly low at 28.4%.
NFLX puts expiring Sept. 11 - Barchart - As of Aug. 6, 2026
Moreover, the breakeven price, should NFLX drop to
$70.00, is
$68.56, or 7% below Thursday's close (Aug. 6,
$73.69).
That would provide investors a potential upside of 38.3% if they held on (i.e.,
$94.79 price target /
$68.56 -1).
Basically, then, an investor would earn over 4% from these two short put trades after NFLX released its earnings (i.e., 1.97% +2.06% = 4.03%). https://finance.yahoo.com/markets/options/articles/netflix-looks-attractive-short-put-131502451.html
