This Strategy Pays You 8.2% While Lining Up NFLX At Bargain Prices
Trefis recommends an options-based way to buy Netflix (NFLX.OQ) at a discount after a near-term pullback. NFLX fell about 9% following Q2 guidance below expectations; the article suggests selling a long-dated put (3/19/2027, $70 strike) to collect roughly $273 premium per contract. That trade yields ~4.2% annualized on the $7,000 collateral, and when combined with parking cash at ~4.0% produces an ~8.2% annualized return. If assigned, the effective cost basis is ~$67.27 (about a 31% discount). Trefis frames this as a conservative way to gain exposure while noting Netflix’s solid fundamentals (consensus >13% revenue growth, ~$12B free cash flow). The piece is advisory market commentary aimed at income-seeking investors eyeing a long-term entry point.