Exploration of New Options Opportunities
Investors delving into the realm of Netflix Inc (Symbol: NFLX) were greeted today with a fresh bouquet of options. For the May 10th expiration, new doors have opened, revealing intriguing possibilities for the keen-eyed. At Stock Options Channel, our YieldBoost formula meticulously scrutinizes the NFLX options chain, singling out one put and one call contract deserving of a closer look.
Embracing the Put Contract Potential
Venture into the put contract arena at the $600.00 strike price, and one encounters a current bid of $27.35. Entering the sell-to-open zone for this put contract signifies a readiness to secure the stock at $600.00, all the while reaping the premium harvest. This maneuver would anchor the cost basis of the shares at $572.65 (before broker commissions). An engaging prospect for an investor eyeing NFLX shares, offering an escape route from the prevailing $603.18/share price.
Steering towards the call contract frontier, the $620.00 strike price presents a current bid of $28.05. Assuming the role of a call seller post-purchasing NFLX stock at the ongoing price level of $603.18/share, a dance with the $620.00 destiny commences. Should the stock get called away at the May 10th expiration, an enticing 7.44% total return (discounting dividends) awaits the bold voyager. Yet, the potential for NFLX shares to ascend to greater heights looms large, emphasizing the importance of charted history and business fundamentals.
Visualizing the Options Journey
A visual representation spanning the trailing twelve months showcases NFLX’s trading odyssey. The $600.00 strike shines in green, while its $620.00 counterpart blazes in red, carving a vivid map for traders on this high-stakes adventure.
Unveiling Implied Volatility Nuances
The put and call contract examples exude an aura of implied volatility clocked at 41%. In contrast, the genuine trailing twelve-month volatility (factoring in the last 251 trading day closures and today’s price of $603.18) stands at 35%. For a treasure trove of put and call options contract insights, a voyage to StockOptionsChannel.com beckons.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
