🎯Netflix, Inc. Options Strategy：Bull Put Spread (Credit Spread)
- Underlying: $Netflix(NFLX)$
- View: Cautiously Bullish / Expecting a Bounce from Oversold Levels, but with defined risk.
- Strategy Type: Defined Risk, Credit Spread, Positive Theta.
- Option Contract Portfolio:
- Sell 1 NFLX Put @ $95.00 Strike | Expiration: 2026-05-01
- Buy 1 NFLX Put @ $92.50 Strike | Expiration: 2026-05-01
- Max Gain & Loss: Max Gain = Net Credit Received | Max Loss = ($95.00 - $92.50) - Net Credit.
- Initial Cost/Credit: Net Credit of ~$0.85 (Estimated from chain: Sell $95 Put @ ~$1.27, Buy $92.50 Put @ ~$0.42).
- Greek Exposure (Simulated):
- Delta: ~+0.25 (Moderately bullish)
- Theta: ~+0.04 (Positive time decay)
- Vega: ~-0.02 (Slightly short volatility, benefits from IV drop)
- Gamma: ~-0.05 (Low, as short options are near expiration)
- Rho: Negligible for short-term trade.
- Rationale: This strategy capitalizes on the bullish rebound view by selling a put below the key $94.41 support. The net credit is earned if NFLX stays above $95 at expiration. The positive Theta works in our favor as time passes. The short Vega position is advantageous given the current IV is in the lower historical range (25.6% percentile), making premium selling attractive. The long put at $92.50 defines and limits maximum risk. The Greek profile shows a favorable balance: directional bullish exposure (Delta+), daily income (Theta+), and a bet on stabilizing/falling volatility (Vega-).
- Time Frame: Short-Term (11 days to expiration).
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