Kevin Kelly of Recon Capital Partners recommended on Bloomberg Markets a bullish options strategy in Netflix, Inc. NFLX ahead of earnings.
The company is going to report earnings on Wednesday and Kelly wants to use a bullish risk reversal strategy to make money on the event. He wants to sell the January weekly, 128 strike put and buy the January weekly, 135 strike call for a total cost of $1.65. The trade breaks even at $136.65 or 2.83 percent higher. If Netflix drops below $128, Kelly is going to have to buy the stock at that price.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
