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Netflix stock rises after earnings dip, options strategy targets yields
NFLX closed at $81.72 on Aug. 28, up 2.35%, after gaining more than 20% over the prior month from a July 20 low of $67.60.
Netflix Inc. shares have climbed after a post-earnings dip, closing at $81.72 on Aug. 28, up 2.35%, according to Yahoo Finance.
Despite the run, the stock remains near levels it was at about three months ago, and the article highlights that the recent move could be followed by profit-taking if the shares stall or trade in a range.
The piece argues that an investor could consider shorting out-of-the-money puts to potentially generate income and potentially lower the entry price, citing specific put strikes including the $78 put in the Oct. 2 expiration chain and its midpoint premium of $1.40.
It also cites analyst price targets from a survey of 51 analysts and other compiled targets, calculating an average price target that implies upside relative to the Aug. 28 close.