New Netflix Options for May 23rd Offer Investors Diverse Strategies

Investors in Netflix Inc (Symbol: NFLX) have new options available today for expiration on May 23rd. According to the Stock Options Channel, our YieldBoost formula has analyzed the NFLX options chain and identified one notable put contract and one call contract.

Put Contract Analysis

The put contract at the $915.00 strike price currently has a bid of $53.80. If an investor sells to open this put contract, they commit to purchasing the Stock at $915.00, while also collecting a premium. This would effectively reduce the cost basis of the shares to $861.20 (excluding broker commissions). For those planning to buy NFLX shares, this option offers a more attractive entry point compared to the current share price of $919.70.

Since the $915.00 strike price represents about a 1% discount off the current trading price, there is a chance that the put contract could expire worthless. Current analytical data indicates a 56% probability of this outcome. The Stock Options Channel will monitor these odds over time and publish updates on their website. Should the contract expire without value, the premium would yield a 5.88% return on the cash commitment, equivalent to a 42.92% annualized return—a measure we refer to as the YieldBoost.

Below is a chart depicting the trailing twelve-month trading history for Netflix Inc, with the $915.00 strike highlighted in green:

Call Contract Overview

On the call side, the option at the $935.00 strike price has a current bid of $54.70. Should an investor buy shares of NFLX at the current price of $919.70 and sell to open this call contract as a “covered call,” they would commit to selling the Stock at $935.00. Including the premium received, this strategy could provide a total return of 7.61% at expiration—assuming the stock gets called away (not including dividends). Note that substantial upside potential may be missed if NFLX shares climb significantly, making it essential to review both the company’s trading history and business fundamentals. Below is a chart showing NFLX’s trading history with the $935.00 strike highlighted in red:

The $935.00 strike indicates a 2% premium over the current trading price, meaning there is also a chance that this covered call could expire worthless. Should that occur, the investor keeps both their shares and the collected premium. Current data suggests a 49% probability of this outcome. Over time, the Stock Options Channel will track these probabilities, along with the trading history of the option contract, providing updates on their website. If the covered call expires worthless, the premium would provide an additional return of 5.95%, translating to a 43.42% annualized boost known as the YieldBoost.

Volatility Measures

The implied volatility for the put contract is at 45%, while the call contract exhibits an implied volatility of 46%. However, the actual trailing twelve-month volatility, which considers the last 251 trading days and today’s price of $919.70, is calculated at 32%. For additional put and call option ideas, visit StockOptionsChannel.com.

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also see:

• Historical EPS
• PVL Dividend History
• QEFA Videos

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.