Buy NFLX Put

Netflix (NFLX) will report after the close. My gut says to buy a put for several reasons.

1.Technical Rank is weak at 10%. The Erlanger Short Interest Ratio is low at 2.53.

2.Erlanger Option Rank is low at 19% meaning Call activity is extreme. So sell shares or hedge it, short it.

3.Seasonality turns down. here.

4.Volume via EVS is weak.

Fundamentally, there are questions on a potential move to live events which will cost more. I have been playing around with AI generated content.

This is an aggressive trade. So we would use half the normal amount to trade. If the trade does not work, it could be a loser quickly.

Buy the NFLX July 31 $70 Put For $2.30.

NFLX is trading at $73.22.