Bear with me as I try to accurately capture my situation. Yes — I know the need to get a new position so you can recover losses. It's a common practice throughout corporate America to compensate employees with stock options. These positions began as iron condors and the calls were covered at a cheap price. And Netflix is showing no signs of slowing down. Heed the early-warning signal in 11 popular tech stocks' money flows. There is very little that differentiates the companies, so their content is a way to make them look more attractive.
Option Chain for Netflix, Inc. (NFLX) Calls "Calls" is an option that gives the holder the right to buy the underlying asset. Last "Last Sale" is the most recent trade.
Approaching Netflix stock through the options market could be a smart way to find the right risk and reward equation. The company has consolidated its position as the market leader in video streaming on a global scale, and the business is expanding at full speed in international markets. Besides, profitability metrics are moving in the right direction, so Netflix is proving to investors that it can grow like crazy while at the same time taking care of profit margins. On the other hand, valuation is reaching stratospheric levels, and investors are expecting a lot from the company in the years ahead.
If there is any disappointment down the road, Netflix stock would clearly be vulnerable to the downside from current price levels. Fortunately for investors, the options market provides plenty of alternatives to play the stock in accordance to different degrees of risk tolerance and return targets.
Netflix is growing at an impressive speed. TTM data by YCharts. The most recent earnings report from Netflix confirms that the business keeps firing on all cylinders as of the first quarter of Even more important, the company is gaining new subscribers at an impressive speed.
The company is also making solid progress on the profitability front. Contribution margin in the U. Offering a similar perspective, company-level operating profit margin increased from 7.
On the other hand, valuation is an important concern when evaluating a long position in Netflix stock. Since Netflix is aggressively investing for growth, current earnings and cash flows are arguably underestimating the company's true earnings potential over the long term. Nevertheless, the stock also looks expensive in terms of revenue.
Netflix stock is trading at a price to sales ratio of As a reference, Disney DIS trades at a price to sales ratio of 2. Netflix clearly deserves an above-average valuation due to it's superior growth prospects, but the company will need to deliver outstanding performance in order to justify the current price tag.
One thing is quite clear, the current entry price in Netflix stock doesn't provide any kind of buffer in case of bad news. If financial performance disappoints in the future, the stock could take a huge hit. Data may be intentionally delayed pursuant to supplier requirements. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
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Sep 09, · Updated options chain for Netflix Inc.- including NFLX option chains with call and put prices, viewable by date. rows · View the basic NFLX option chain and compare options of Netflix, Inc. on Yahoo Finance. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is .