Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Netflix, Inc. (NFLX): How Can You Make Up To 10% Profit At Low Risk Of $1 On The Downside?

Netflix, Inc. (NASDAQ:NFLX) had a pretty poor final quarter of 2014 after a disappointing quarter earnings report in October. Netflix, Inc. (NASDAQ:NFLX) stock has dropped more than 25% in the last 6 months, which is very huge. But still many feel that there is a possibility to make money out of Netflix, Inc. (NASDAQ:NFLX) stock. Trading Advantage Senior Market Strategist Scott Bauer shared his options play on Netflix, Inc. (NASDAQ:NFLX) stock on Bloomberg TV.

Netflix, is NFLX a good stock to buy, Neil Hunt, 4K streaming, challenges, H.265, ultra high definition,

Bauer said that he is planning to come back into Netflix, Inc. (NASDAQ:NFLX) stock, but he added that he would do it with some caution. He suggested that something like a call butterfly spread looking into the upside trend could be done on Netflix, Inc. (NASDAQ:NFLX) stock to make high profits at low risk.

“What I am going to do on the weekly January 23rd options. I want to buy the 340 call. I sell two of the 355 calls and I buy one of the 370 calls. [….] It gives me a lot of upside movement here. It cost me about a dollar. So that’s my downside here. But I make money Julie if this thing goes from $341 all the way upto $370ish, I make money. Anything below $341 or above $370 the most I can lose is a dollar. But I gives me that whole upside play,” Bauer said.

Bauer added that this play gives him a whole 10% upside play either moving into the earnings or on the earnings. He feels that this is a great play to make money out of Netflix, Inc. (NASDAQ:NFLX) stock at very low risk of just $1.

Bauer’s option play can provide a huge profit if the stock can go above $340 and stays within $370, which is currently trading at $334.45. But will earnings report have positive impact on Netflix, Inc. (NASDAQ:NFLX) stock is the big question, the answer of which might decide if Bauer’s options play reap rewards or not.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!