Trade Alert - (NFLX) April 3, 2025

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) April 2025 $800-$810 in-the-money vertical Bull Call debit spread at $8.50 or best

Opening Trade

4-3-2025

expiration date: April 17, 2025

Number of Contracts = 13 contracts

Today, the implied volatility for Nvidia options is at 51%, a five-year high. Once impossible trades are now doable.

I have been trying to buy Netflix for years, but it has always been insanely expensive. Investors are willing to pay big premiums for reliable dividends and earnings compounders like (NFLX).

However, after a 15% decline in a month, the shares are no longer insanely expensive, just expensive. I am going to get into Netflix because they are an absolutely outstanding company that clearly won the streaming wars.

If we had a different president of the United States, I would be recommending a two-year LEAPS on Netflix right now. But the world is too uncertain and unstable to contemplate such long-term risk now. I‘ll wait for the recession versus the depression to get settled first.

As far as I know, Netflix has no government contracts that can get cut any day without notice, a great risk to any share price these days.

I am therefore buying the Netflix (NFLX) April 2025 $800-$810 in-the-money vertical Bull Call debit spread at $8.50 or best.

Don’t pay more than $9.00 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 $1.00.

If you don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $8.50, $8.60, $8.70, $8.80, and $8.90. 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 and mobile games, through its flagship service. As of 2023, Netflix was the 23^rd 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 is a bet that Netflix will not fall below $810 by the April 17 option expiration in 10 trading days.

Here are the specific trades you need to execute this position:

Buy 13 April 2025 (NFLX) $800 calls at………….….……$140.00

Sell short 13 April 2025 (NFLX) $810 calls at……………$131.50

Net Cost:………………………….………..……….......................$8.50

Potential Profit: $10.00 - $8.50 = $1.50

(13 X 100 X $1.50) = $1,950 or 17.64% in 10 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.

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