Shorting Netflix Out-of-the-Money Puts Here Is a Good Buy-In Strategy

Out-of-the-money (OTM) put options in Netflix Inc (NFLX) stock have attractive yields and provide a good buy-in strategy for value investors. This especially applies to near-term expirations, such as one-month out periods.

I discussed how cheap NFLX stock is in my Oct 20 article, “Netflix Stock Looks Cheap to Value Investors Based on Its Huge Free Cash Flow.” I projected that NFLX could be worth between $940 and $975 over the next year. Today NFLX is at $762.78 per share.