Stock / Symbol: Netflix / NFLX
Option Strategy: [private_monthly]butterfly[/private_monthly];
Price at trade post: $346.50;
Reasoning: The street is expecting a +/- move of 43 (or 12%) on Netflix following tonight's earnings release. I'm going to put on a low risk, high reward bet that it pops 7% on the news. I'm using a [private_monthly]butterfly call spread with this week's expiring options.[/private_monthly]. The trade's greeks are: 0.05 delta, 1.77 theta, and -0.13 vega. This is a low probability trade so I'm not risking much.
Trade Details:[private_monthly]
BTO 2 NFLX OctWk4 365 calls
STO -4 NFLX OctWk4 370 calls
BTO 2 NFLX OctWk4 375 calls
for a max net debit of $0.35 per contract. (day order, limit order). The current mid is $.15. I was filled at .25.
Requirements:
Cost/Proceeds $50
Option Requirement $0
Total Requirements $50
Estimated Commission $12
[/private_monthly]
Max Risk: $50
Max Reward: $800 (or 1600%)[private_monthly] at $370[/private_monthly] by Oct 25[private_monthly]
Profit Range: 365 to 375
Suggested Upside stop: NA
Suggested Downside stop: NA
[/private_monthly]
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