Exploring Options for Netflix Inc (NFLX)
This week marked a pivotal moment for investors engaged with Netflix Inc (NFLX) as new options emerged for the May 31st expiration date. Delving into the world of options, our focus sharpens on the intriguing domains of the NFLX options chain, homing in on specific put and call contracts that have captured our attention.
Unveiling Opportunity in Put Contracts
Dipping into the put contract arena, the spotlight gleams brightly on the $625.00 strike price with a current bid of $33.75. For the intrepid investor willing to sell-to-open this put contract, the commitment stands to acquire the stock at $625.00, while pocketing the premium. This maneuver offers an enticing opportunity, setting the groundwork for a cost basis of $591.25 per share (excluding broker commissions). A strategic move indeed, particularly to those eyeing a stake in NFLX, presented as an attractive alternative against the prevailing stock price of $628.27 per share.
Navigating the Path of Calls
Shifting the focus to the domain of calls, the call contract positioned at the $635.00 strike price beckons with a bid of $35.40. An investor venturing into the stock at the current price point of $628.27 per share can leverage this call contract through a “covered call” strategy. By committing to sell the stock at $635.00, coupled with collecting the premium, a prospective total return of 6.71% (excluding dividends) materializes if the stock is called away come May 31st expiration. Yet, a trove of untapped potential hovers in the wings should NFLX shares surge, underscoring the importance of analyzing Netflix Inc’s trading history over the past twelve months and delving into its fundamental business underpinnings.
Delving into Volatility and YieldBoost
The put contract unfolds with an implied volatility of 42%, while the call contract scenario mirrors a 41% implied volatility. As the curtain falls on actual trailing twelve-month volatility, standing at a calculated 34%, the realm of options beckons with nuanced complexities and potential for dynamic outcomes. An array of put and call options await exploration for those ready to venture deeper into the pulsating realm of stock options.
For more insights and perspectives on potential options contract ideas worth exploring, embark on a journey to StockOptionsChannel.com and uncover a spectrum of possibilities awaiting discerning investors.
