New Netflix Options Expiring December 2027 Provide Strategic Opportunities

Investors in Netflix Inc. (Symbol: NFLX) gained access to new options today, specifically for the December 2027 expiration. A crucial factor influencing an option buyer’s price is the time value. With 981 days remaining until expiration, these newly listed contracts offer an appealing chance for sellers of puts or calls to command higher premiums compared to contracts with nearer expiration dates.

Our YieldBoost formula at Stock Options Channel has meticulously analyzed the NFLX options chain associated with the December 2027 contracts, identifying one put and one call contract of particular interest.

Put Contract Highlights

The put contract at the $900.00 strike price currently shows a bid of $172.10. Investors who sell-to-open this put contract agree to purchase shares at $900.00, while simultaneously collecting the premium, which effectively reduces their cost basis to $727.90 (before broker commissions). For those already looking to invest in NFLX, this presents an appealing alternative to the current share price of $938.57.

Given that the $900.00 strike represents a 4% discount from the current trading price, there is a possibility this put would expire worthless. Current analytics indicate a 71% chance of that outcome occurring. Stock Options Channel will monitor these odds over time, providing updated charts on our website under the contract details. If the contract does expire worthless, the premium would yield a 19.12% return on the cash commitment, translating to an annualized return of 7.11%, which we refer to as YieldBoost.

Trading History Chart

Below is a chart illustrating the trailing twelve-month trading history for Netflix Inc., with the $900.00 strike price indicated in green:

Call Contract Analysis

On the calls side, the contract at the $1140.00 strike price has a current bid of $186.05. If an investor buys NFLX shares at the prevailing price of $938.57 per share and sells-to-open the call contract as a “covered call,” they commit to sell the shares at $1140.00. By collecting the premium, the total return (excluding dividends) would be approximately 41.28% if the stock is called away at the December 2027 expiration (before broker commissions). However, significant upside could be left untapped if NFLX shares appreciate significantly, emphasizing the need to evaluate its trailing twelve-month trading history along with the business fundamentals.

Below is the chart displaying NFLX’s trailing twelve-month trading history, with the $1140.00 strike highlighted in red:

Notably, the $1140.00 strike price is about 21% higher than the current trading value, indicating it is out-of-the-money by that amount. Consequently, there is a risk that the covered call contract could expire worthless, allowing the investor to retain both their shares and the premium. Current analytical data estimate the probability of this occurring at 44%. We will also track these odds over time on our website, alongside charts reflecting the trading history of the option contract. Should the covered call expire worthless, the premium would deliver a 19.82% additional return to the investor, or 7.38% annualized, which we similarly identify as YieldBoost.

Volatility Insights

The implied volatility for the put contract is 42%, while it stands at 37% for the call contract. In contrast, we calculate the actual trailing twelve-month volatility—factoring in the last 251 closing prices—is around 33%. For further options contract opportunities, visit StockOptionsChannel.com.

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Also see:

• Construction Dividend Stock List
• CLDX Average Annual Return
• CMLF Options Chain

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