NaughtyPines

NFLX EARNINGS PLAY

NASDAQ:NFLX   NETFLIX INC
NFLX             announces earnings on 10/14 after the market close, so look to fill any setups on 10/14 prior to New York's closing bell.

Ordinarily, I like to work these via Iron Condor or short strangle (buying power permitting).

Currently, here are the two setups I'm looking at:

An October 23rd 89/92/134/137 Iron Condor
POP: 71%
Max Profit: $89/contract
Buying Power Effect: $211/contract
Break Evens: 91.11/134.89

An October 23rd 92/134 Short Straddle
POP 77%
Max Profit: $385/contract
Buying Power Effect: Undefined
Break Evens: 88.15/137.85

Notes: The short call and the short put strikes are indicated on the chart in blue, with the 134 strike somewhat above the 2015 high and the short put above the swing low at 85.50. Consequently, I could see skewing the setup slightly bearish , for example, by lowering the 134 short call strike to 130 and the short put strike down to 88 (and adjusting the long call/put strikes accordingly).
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