/Netflix%20on%20tv%20with%20remote%20by%20freestocks%20via%20Unsplash.jpg)
Netflix, Inc. (NFLX) generated $5.1 billion in free cash flow (FCF) in Q1, including a $2.8 billion deal termination fee. Adjusted FCF margins are still high, implying NFLX is worth $119, +22%. One attractive play is to short OTM puts.
NFLX closed at $97.31 on Friday, April 17, down 9.7% after releasing its Q1 results after the market close on April 16. This is still above a recent low of $75.86 on Feb. 12, right before the company walked away on Feb. 26 from its attempt to buy Warner Bros. Discovery (WBD).