Options Insight: How to Play Netflix Ahead of Earnings

The video discusses the current state of the market, highlighting the role of uncertainty and margin money in driving market dynamics. It suggests that the market may be near its peak, with underlying fundamentals not supporting current levels. The speaker expresses skepticism about the sustainability of the rally, citing weak earnings and financial engineering. A trading strategy involving Netflix is proposed, aiming to capitalize on expected market movements while managing risk. The strategy involves selling and buying calls to benefit from potential upside or downside movements.

What is one of the main factors currently driving the markets according to the speaker?

• Uncertainty and greed

• Stable economic growth

• Technological advancements

• Government regulations

According to the speaker, why might the market be near its peak?

• High consumer confidence

• Strong underlying fundamentals

• Lack of supporting fundamentals

• Consistent job growth

What does the speaker think about the current earnings reports?

• They are irrelevant to market trends

• They are exceeding expectations

• They are consistently strong

• They are not very good

What is the expected move for Netflix next week according to the speaker?

• 5%

• 11%

• 20%

• 15%

What is the main risk of the Netflix trade strategy mentioned by the speaker?

• The stock price remains between 96 and 98

• The stock price falls below 90

• The stock price remains stable

• The stock price rises above 100