Streaming entertainment is one such space that
continues to receive a lot of attention. The internet completely revolutionized
how people watch video entertainment, and there are numerous companies all
vying for a piece of the action.
Streaming is not a new phenomenon, though, and
there are already some winners. With over 232 million paid memberships as of
March 31, Netflix Inc (NASDAQ:
NFLX) deserves credit for pioneering streaming.
Co-founder and former CEO Reed Hastings correctly predicted that video
entertainment would become extremely popular because it was much more
convenient and affordable for consumers.
He was right, and he positioned his business
to capture this opportunity before others caught on. Netflix's first-mover
advantage resulted in it finally producing positive free cash flow, with $1.6
billion in 2022 and a projected $3.5 billion this year.
Like many technology stocks, Netflix has suffered
over the past year or so. After hitting its peak in late 2021, the stock
plunged more than 75% as fears grew that Netflix was past its prime. However, over
the past year, Netflix stock has risen to being a great stock again, gaining
150% since it bottomed last June.
Netflix’s shares have surged 42.5% year to date.
The Netflix Weekly Options Trade Explained.....
** OPTION TRADE: Buy NFLX JUN
23 2023 420.000 CALLS - price at last close was $5.57 - adjust accordingly
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the NFLX Weekly Options (CALL) Trade on Thursday, June 08,
2023, at 9:36, for $4.90.
Sold half the NFLX weekly options contracts on Thursday, June 08,
2023, at 3:59, for $7.90; a potential profit of 91%.
Total Dollar Profit is $790 - $4.90 (cost of contract)
Sold the remaining NFLX weekly options contracts on Friday, June 09,
2023 for $16.00; a potential profit of 227%.
Total Dollar Profit on Friday is $1,600 - $490 (cost
of contract) = $1,110
Thursday + Friday Profits = $1,410
For any members that missed selling their weekly
options contracts there is still time as Netflix stock is still performing
Don’t miss out on further trades – become a member today!
Why the NFLX Weekly Options Trade Keeps Getting Better…..
are two major catalysts at the moment helping push Netflix’s share price higher…..
Password Sharing - Netflix announced its paid password-sharing
model in the United States on May 23, notifying members that their accounts
cannot be shared for free to users outside their households.
Netflix experienced an increase in subscribers during the four days
following the announcement. The paid sharing model is an integral step to
tackle widespread account sharing, which erodes the company’s ability to invest
and improve content for paying members.
Netflix gained around 100K daily sign-ups on May 26 and May 27, higher than any
other four-day period in the United States since 2019. Its average daily
sign-ups reached 73K during that period, up 102% increase from the prior 60-day
Netflix already launched paid sharing model in Canada, New Zealand, Spain and
Portugal in first-quarter 2023. Moreover, NFLX has plans to launch the paid
sharing model in major markets like Brazil, Britain, France and Mexico.
Tier - Late last year, Netflix debuted its Standard with Ads tier at $6.99 per
month. Now, the lower-priced plan appears to have hit its stride. Early last
month, the company informed advertisers that the plan had attracted nearly 5
million monthly active users across the globe. Perhaps as importantly, the
engagement of subscribers on the Standard with Ads tier is on par with
comparable plans without advertising.
will generate roughly $620 million in digital ad revenue in 2023. Add to that
the roughly $419 million earned in estimated subscribers' fees from the
lower-cost plan, and revenue from the Standard with Ads tier is starting to add
Netflix’s strong content portfolio and the positive impact of password
sharing are expected to help it win subscribers in the near term. It expects
second-quarter 2023 revenues to increase 3.4% year over year to around $8.242
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