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Barchart
Mark R. Hake, CFA

Netflix Puts Are Attracting Short Sellers Ahead of Its Earnings Out Today

Netflix (NFLX) reports its Q1 earnings after the market closes today April 18 (tax day). NFLX stock is wavering, down to $331.23 per share and its put option premiums are rising. Astute investors are taking of this by shorting its put options as an income play.

Fears about its subscriber levels, and whether they will still show growth are pushing up put prices. As a result, income-oriented investors are shorting out-of-the-money (OTM) near-term puts with very short expiration periods in order to create extraordinarily high income.

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