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On October 5, 2023, new options for Netflix Inc (NFLX) were introduced, specifically contracts expiring in January 2028. The put contract at a $1120.00 strike price has a current bid of $169.15, with a potential cost basis of $950.85 for investors committing to purchase shares. This represents an approximate 6% discount from its current trading price of $1190.21.
Additionally, there is a call contract at a $1250.00 strike price, which has a current bid of $261.80. If an investor sells this covered call, the total return could reach 27.02% if the stock is called away by January 2028. The strike represents a 5% premium over the current price, with a 37% chance of expiration worthlessness.
Current implied volatilities are 37% for the put contract and 34% for the call contract, while actual trailing twelve-month volatility stands at 33%.
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