NFLX – Netflix, Inc. – Shares of the provider of DVD-rental-by-mail service fell as much as 11.5% in the first half of the trading day to an intraday low of $105.90 after the firm’s second-quarter sales of $519.8 million failed to meet the average analyst sales forecast of $525.4 million for the quarter. Netflix Inc. shares were cut to ‘hold’ from ‘buy’ with a 12-month target price of $107.00 at Canaccord Genuity Corp. today. Shares are currently down 10.95% to arrive at $106.51 as of 11:35 am (ET). The nosedive in the price of the underlying shares attracted the attention of contrarian options investors. Traders hoping to see NFLX shares rebound ahead of August expiration initiated bullish positions on the stock. It looks like some optimists purchased plain-vanilla debit call spreads, buying approximately 1,000 calls at the August $110 strike for an average premium of $5.29 a-pop, and selling about the same number of calls at the higher August $115 strike for an average premium of $3.66 each. Call-spreaders paid an average net premium of $1.63 per contract, and stand ready to make money should the movie rental provider’s shares rebound 4.80% off the current price of $106.51 to surpass the average breakeven point to the upside at $111.63 by August expiration. Contrarians long the spread may walk away with maximum potential profits of $3.37 per contract if Netflix shares rally 8.00% to trade above $115.00 by expiration day next month.