Goldman Sachs Suggests Buying Options on Netflix

Goldman Sachs is out with a research report this morning, where it suggests that traders buy options on Netflix NFLX. Goldman Sachs Internet analyst Ingrid Chung rates NFLX shares Buy and sees 11% upside to her 6-month price target of $330. She notes that recent channel checks suggest that new subscriber adds, a key metric for NFLX shares, appears to be tracking ahead of company guidance, given strong ComScore data. The analyst's EPS estimate is 11% ($1.26 vs. $1.14) above the Street for the quarter. Goldman Sachs suggests buying the August $300 straddle for 13% of the underlying. Netflix, Inc. is an Internet subscription service streaming television shows and movies. The company's subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices and in the United States, subscribers can also receive digital versatile discs delivered to their homes.