If Netflix had only sold off 2percent how would those puts have done? Not well and not because of the leverage.
there is no edge in options , you buy oversold for bounce , or sell overbought for drop. Hold it or fold it , like in poker.stick with Spy and slv or gld
market makers are the ones losing in options and getting out of the business. options are one of the places where a retail account can make good returns
If you want to continue to insist, as you have, that speculating with options for the leverage is misguided regardless of who is doing it and why, you can't.
Does that blinding flash of the obvious mean nobody should ever buy far out of the money puts for the leverage?
yes it does. If your view that Nflx will go down but not by some amount then using options to get leverage won't help you profit. It means that you can't make money on a Option unless the stock realizes a greater volatility than what the option is priced at. You can theoretically control a lot more stock via options (the leverage ou are referring to) but won't profit unless the realized volaility is greater from what the option is pricing. Obvious for you now?