Netflix stock options are priced for a more than $27 one-day post-earnings move, ORATS says


An options strategy Netflix Inc.’s stock known as a straddle on is priced Tuesday for a much bigger than usual one-day move after the streaming video giant reports second-quarter results after the closing bell. A straddle is a pure volatility play in which bullish (calls) and bearish (puts) options with at-the-money strikes and expirations at the end of the week are purchased simultaneously. Straddles are currently priced so buyers will start making money only if the stock moves at least $27.45 in either direction on Wednesday, according to data provided by Matt Amberson, principal at Option Research & Technology Services…

This article was originally published by Read the original article here.

Previous article: Junk bonds aren’t as junky as investors think – which makes them a good contrarian buy
Next articleS&P 500 CEOs earned 324 times more last year than their median-paid workers


Please enter your comment!
Please enter your name here