Trade Alert
Trade Alert – (NFLX) October 22, 2025 – BUY
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) – BUY
BUY the Netflix (NFLX) November 2025 $1,000-$1,020 in-the-money vertical Bull Call debit spread at $17.50 or best
Opening Trade
10-22-2025
expiration date: November 21, 2025
Number of Contracts = 6 contracts
Netflix is down $119 today, or 9.6%, off the back of disappointing earnings that came out yesterday. The surprise issue involved tax payments to Brazil. Otherwise, the earnings were great and in line with expectations.
I’m not buying it.
Brazil accounts for only 2% of Netflix sales. The taxes at issue are 0.2% of sales. It doesn’t seem to be a loss that justified a $47 billion loss in market capitalization. This is a classic example of shoot first and ask questions later. This is just a reserve for a court case they may well win.
The company is now releasing 16,000 titles every six months. Their hit animation release, Kpop Demon Hunters, just brought in a staggering 350 million views, the most in history. They are moving aggressively into sports. Add revenues have doubled. Broker upside targets most hover around $1,500 a share.
As is often the case, Netflix shares have 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 $475 billion company. It has an option implied volatility of 40%. 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.
The company’s outlook for the fourth quarter is solid. We also get support for this trade from the 200-day moving average at $1,110.
I am therefore buying the Netflix (NFLX) November 2025 $1,000-$1020 in-the-money vertical Bull Call debit spread at $17.50 or best.
Don’t pay more than $18.00, or you’ll be chasing on a risk/reward basis.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order. If that gets you nothing, try raising your strike prices by $10.00.
If you don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Canceled orders overnight, like $17.50, $17.60, $17.70, $17.80, and $17.90. You should get done on some or all of these.
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 click here to visit their website.
This is a bet that Netflix will not fall below $1020 by the November 21 option expiration in 22 trading days.
Here are the specific trades you need to execute this position:
Buy 6 November 2025 (NFLX) $1,000 calls at………….………$130.00
Sell short 6 November 2025 (NFLX) $1,020 calls at…………..$112.50
Net Cost:………………………….………..……………………………..……$17.50
Potential Profit: $20.00 – $17.50 = $2.50
(6 X 100 X $2.50) = $1,500 or 14.29% in 22 trading days.
If you are uncertain about how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
