Trade Alert
Trade Alert – (NFLX) August 15, 2025 – EXPIRATION AT MAX PROFIT
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert – (NFLX) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Netflix (NFLX) August 2025 $1040-$1060 in-the-money vertical Bull Call debit spread at $20.00
Closing Trade
8-15-2025
expiration date: August 15, 2025
Number of Contracts = 6 contracts
This is the kind of trade alert I love sending out.
Just to be clear, this position does not expire until 4:15 PM on Friday, August 15.
Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (NFLX) trading at $169.53, or 16% above the nearest strike price.
As a result, you get to take home $2,100 or 21.21% in 20 trading days. Well done, and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, August 18, and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service. The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.
As is often the case, Netflix shares suffered a selloff on a good earnings report. It is a classic “Buy the rumor, sell the news” type move.
It has a very high growth rate for a $542 billion company. It has an option implied volatility of 39%. It also just announced blockbuster earnings yesterday, removing a potential downside risk. With a price-earnings multiple of 60X, it is one of the most expensive stocks in the market, but in this case, the high multiple is justified.
Revenue for the quarter reached $11.08 billion, up 16% year over year. But nearly two-thirds of the streamer’s sales come from abroad. Much of the strength came from a weak US dollar.
The company reported $7.19 a share in earnings, ahead of Wall Street’s consensus estimate of $7.08, and up from $4.88 last year. Operating profit margin also exceeded expectations at 34.1%.
The company’s outlook for the third quarter was solid. The company’s projection of $6.87 a share in earnings is better than analyst estimates of $6.69. Netflix guided to revenue of $11.56 billion versus the expectation of $11.28 billion.
Netflix is an American subscription video-on-demand streaming service. The service primarily distributes original and acquired films and television shows from various genres, and it is available internationally in multiple languages.[6]
Launched in 2007, nearly a decade after Netflix, Inc. began its pioneering DVD-by-mail order rental service, Netflix is far and away the most popular streaming service today. with 301.6 million paid memberships in more than 190 countries as of today.
By 2022, “Netflix Original” productions accounted for half of its library in the United States, and the namesake company had ventured into other categories, such as video games, mobile games, through its flagship service. As of 2023, Netflix was the 23rd most visited website in the world, with 23.66% of its traffic coming from the US, followed by the United Kingdom at 5.84%, and Brazil at 5.64%.
To learn more about the company, please visit their website at https://about.netflix.com/en
This was a bet that Netflix would not fall below $1,060 by the August 15 option expiration in 20 trading days.
Here is the specific accounting you need to close out this position:
EXPIRATION of 6 August 2025 (NFLX) $1,040 calls at………….………..$169.53
EXPIRATION of short 6 August 2025 (NFLX) $1,060 calls at……………$149.53
Net Proceeds:………………………….………..…….………………………………..…$20.00
Profit: $20.00 – $16.50 = $3.50
(6 X 100 X $3.50) = $2,100 or 21.21% in 20 trading days.
