NFLX – Netflix, Inc. – The bullish story for Netflix continues this morning with shares of the DVD-rental-by-mail service provider rallying more than 2.4% in early trading to an intraday and new 52-week high of $121.55. Shares of the underlying stock are currently up 1.00% to $119.85 as of 10:55 am (ET). Optimistic options traders once again sold out-of-the-money put options in the June contract. Investors sold approximately 2,200 puts at the June $115 strike to pocket an average premium of $2.78 apiece. Put sellers keep the full premium received on the transaction as long as NFLX shares exceed $115.00 through expiration day next week. Bulls short the puts are apparently happy to have shares of the underlying stock put to them at an effective price of $112.22 each should the puts land in-the-money by expiration.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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