NFLX earnings spread

Discussion in 'Options' started by heiasafari, Jul 22, 2012.

  1. Noooo. I was responding to the asym fly with that one. I recommended the 75/80 long put backspread (short 80P, long x2 75P). I had no position in NFLX.
     
    #31     Jul 24, 2012
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    #32     Jul 24, 2012
  3. I know. I was taking about OP's trade

    +1 72.5 weekly
    -4 70 weekly
    +3 60 AUG
     
    #33     Jul 24, 2012
  4. Gotcha. ATM backspread is as close as you get to an arb on NFLX.
     
    #34     Jul 24, 2012
  5. Meaning if I buy it back on the open instead of waiting till expiration?
     
    #35     Jul 24, 2012
  6. Pick one.
     
    #36     Jul 24, 2012

  7. what do you mean by that? arb.. arbitrage obviously but in what respect.. are you saying you can sell the ATM and buy OTMs for neither a credit or a debit? is that what your saying.. i looked at that and i was wondering what kind of profit that would be in now considering the down move.. my backspread will probaly still expire worthless
     
    #37     Jul 24, 2012
  8. No, meaning that the 5-wide atm backspread has been a winner.
     
    #38     Jul 24, 2012
  9. yeah but that cost 1.30 that would have been actually a pretty good bet..
    its going to be worth like over three bucks thats the 80 75 backspread.... but i don't like how you have to put out 1.3 to potientially lose 4-5 if the thing doesn't go that far down..
     
    #39     Jul 24, 2012
  10. is this thing down 1500$ ?
     
    #40     Jul 25, 2012