Earnings Trade Setup: Netflix (NFLX)

Tim Bigham joins Oliver to set up a trade on NFLX before earnings. He does not expect much after earnings as the stock is in a 1 year trading trade, but he has a bullish bias towards $575. There is quite a bit of term structure volatility so Tim demonstrates a call calendar spread that capitalizes on on short term volatility crush as well as upside price movement. The objective is at least a two to one return on risk.

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Earnings Trade Setup: Netflix (NFLX)

Tim Bigham joins Oliver to set up a trade on NFLX before earnings. He does not expect much after earnings as the stock is in a 1 year trading trade, but he has a bullish bias towards $575. There is quite a bit of term structure volatility so Tim demonstrates a call calendar spread that capitalizes on on short term volatility crush as well as upside price movement. The objective is at least a two to one return on risk.

ON AIR
7:00 am
Market Overtime
replay

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Daily insights for every investor

FOLLOW US