October 9, 2019  Terrys Tips Trade Alert  #2 – Earnings Eagle  Portfolio

NFLX announces earnings on October 17.  Options are pricing in a move that is more than double the average recent post-earnings move (11.2% vs. 5.9%):

BTO 1 NFLX 17Jan20 260 put (NFLX200117P260)
STO 1 NFLX 18Oct19 260 put (NFLX191019P260) for a debit of $9.20  (buying a calendar)

BTO 1 NFLX 17Jan20 270 call (NFLX200117C270)
STO 1 NFLX 18Oct19 270 call (NFLX191019C270) for a debit of $10.25  (buying a calendar)  

BTO 1 NFLX 17Jan20 280 call (NFLX200117C280)
STO 1 NFLX 18Oct19 280 call (NFLX191019C280) for a debit of $9.68  (buying a calendar)  

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution

 

Happy trading.

Terry