Investors in Netflix Inc (NFLX) have new options available for the August 8th expiration, including a notable put contract at a $1285.00 strike price, currently bidding at $59.85. Selling this put would require purchasing shares at $1285.00, but allows investors to collect the premium, reducing the effective purchase price to $1225.15. This represents about a 1% discount from the current trading price of $1292.64.
A corresponding call contract at the $1300.00 strike price has a current bid of $64.95. Selling this covered call after purchasing shares at the current price could yield a total return of 5.59% if exercised. The likelihood of the put contract expiring worthless is estimated at 56%, while for the call, the odds are about 48%. Both contracts exhibit an implied volatility of approximately 39%.
