Netflix, Inc. (NASDAQ:NFLX) – Shares of Netflix are down 61% since its film about twerking kids aired – in case they fall further after this week’s earnings.


Bring on Ben-Abbes

In Michel Houellebecq’s 2015 novel Submission, France becomes an Islamic state under a president named Mohammed Ben-Abbes. At the time, the novel seemed dystopian; after the Netflix, Inc. (NASDAQ: NFLX) release of cute by French-Senegalese director Maïmouna Doucouré a few years ago, it started to sound ambitious.

Aeration cute and a similar rate seems to have been inauspicious for Netflix; since the streaming debut of cute in 2020, Netflix shares are down 61%.

Maybe you bought Netflix after the fall

Maybe you bought Netflix recently. If you did, you were probably cheered on by its 8% pop on Friday. UBS analyst John Hodulik isn’t optimistic about Netflix’s next earnings release, however (scheduled for Tuesday):

Analyst John Hodulik, who rates Netflix shares as neutral, lowered the price target to $198 from $355 as he believes subscribers were “tracking in line” with management’s previous forecast for a loss. 2 million, partly due to price increases in the United States and Canada. and parts of Europe.

“Whereas [second-half] is seasonally stronger (~70% of 21; 50% pre-pandemic), we expect cautious guidance amid macro uncertainty,” Hodulik wrote in a note to clients, adding that 1.3 million d subscribers are expected to be added in the third quarter and 2.8 million for the year.

In case Tuesday’s earnings report is lousy

If you’re long Netflix now and want to protect yourself against an ugly report on Tuesday, here’s a way to do it while collecting some bonus cash. As of Friday’s close, this was the optimal collar to hedge 1,000 shares of Netflix against a decline of more than 8% this week, without capping your upside to less than 7% over the same period.

Screenshots via the Wallet armor iPhone app on 07/15/2022.

Your net credit with this coverage was $600. This was calculated conservatively, assuming you bought the put options on the ask and sold the call options on the bid. If you placed both trades within the spreads, your net credit would have been over $600.

Try searching for an optimal collar with the same parameters today and see what you find.

This article was submitted by an external contributor and may not represent the views and opinions of Benzinga.


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