Double or Nothing: Netflix Scores Big
It’s safe to say that Netflix has had a fantastic year. The streaming company’s 107 percent shares increment is almost unprecedented in the modern markets. While this turn of events has been more than jolly good news for the company, one trader believes that Netflix could keep reaching for the stars.
Gordon mentioned that those looking to place their bets on Netflix going big should follow his cue. He said that he believes it’s better to sell puts instead of buying calls for a varied number of reasons. The number one reason is that Netflix’s choices in volatility have suggested that the company was heading towards overbought territory prior to the July 16th date. What this means is that the prices of choices would be expensive especially given the fact that most of the company’s post-earnings moves are typically humongous.
The second reason he has faith in the company is because now seems like the perfect time to swoop in and make full utility of numerous projections on the uptrend. In addition, there’s also a diminutive chance of missing out on massive earnings.
Analysts believe that Netflix’s continued growth and support from investors should peak at about the $380 region. Gordon shared that he’ll be venturing in the sale of a put spread below the $375 support line. Other than that, he’ll also be buying a $370 put just in time for the July 20 expiration. Once he does this, he expects to reap massive earnings with the potential profit of about $1.80-$1.83 credit.
Strength to Strength
Th power shift happened at about the same time that Disney was busy haggling with some owners at 21st Century Fox over their TV and film assets. At the same time, the ex-powerhouse, Disney, noted that a paradigm shift among consumers was inevitable due to changing tastes in consumption habits.
Before recording the momentous 107 percent increment in stock price, Netflix was doing pretty well in their first quarter. Having grown by 70 percent between January and May, the company took away the mantles from Disney by taking a commanding market capitalization of about $162 billion.
A couple of smart marketing moves like poaching the former first family, Barack and Michelle Obama, in a multimillion-dollar deal that would see the pair produce their own shows on Higher Ground Productions. The former president mentioned that they were hopeful of cultivating and curating the talent of inspiring and creative individuals. All in a bid to boost empathy and understanding among individuals eager to share their narratives with the rest of the world.
Information shared by the Financial Times indicated that the Obamas’ lucrative deal included both scripted and unscripted feature films, series and documentaries. Many believe that Disney will be looking to reestablish themselves back as world leaders in the entertainment industry once they make true their ambitions of venturing into the subscription-streaming business.
The aforementioned companies have made it abundantly clear that they are willing to pour billions of dollars to create content on their own platforms. The ricochet effect of this is that conventional entertainment studios have found it hard to cope with the changing tides. This is because there has been a relative increase in costs, a boon for talents, and a bane for their studios. All this has been brought about by Silicon Valley companies lining actors’ pockets with more dough.
Shindler mentioned that they expect Netflix’s global subscriber base to rise to about 360 million by 20140. While these figures are impressive, the company has been quick to point out that this represents a rough conservative estimate given the projections they now have.
More in Business
This is What Former Baseball Star Alex Rodriguez is Doing to Prepare For His Upcoming Union With Jennifer Lopez
Months into their engagement, former New York Yankees player Alex Rodriguez and singer-actress Jennifer Lopez have been busy settling their affairs...July 1, 2019
You Won’t Believe Which Body Parts Mariah Carey Insured for a Whopping Total of $70 Million
Mariah Carey is one of pop music’s most celebrated performers. Beginning her successful music career in the late 80s, the now...July 1, 2019
CEOs vs Celebrities: Who Really Makes More Money?
It’s no secret that being a CEO and a celebrity brings in the big bucks. With multimillion-dollar deals and huge payouts,...July 1, 2019
The Crazy Story About How Comedian Katt Williams Allegedly Lost $59 Million of His Fortune
It’s ironic how it’s actually comedians, whose job is making other people laugh, that usually tend to live troubled and unhappy...July 1, 2019
Here’s Why These Nuns and Katy Perry Are Fighting Over Multi-Million Dollar Former California Convent
Katy Perry has been involved in quite a few controversies throughout her career as a pop star. But none of them...June 30, 2019
Rihanna is Living Her Best Life With Billionaire Boyfriend Hassan Jameel — Here’s Proof
Rihanna has surely gone a long way from her humble beginnings in her home country of Barbados. Not only is she...June 30, 2019
Gayle King Signs a Huge Contact with CBS, And You Won’t Believe How Much She’s Being Paid!
The renowned TV host, Gayle King, has knocked the ball out of the park with her recently CBS renewed contract that...June 29, 2019
The Amazing Story of How Will Smith Became a Real Life ‘Fresh Prince’ With an Expansive Real Estate Portfolio
Will Smith has had one of the most interesting career tracks in Hollywood. Starting out as a rapper donning the name ‘The...June 23, 2019
Experts Say That You Can Never Succeed in Business If You Do This
Everyone wants to be a successful businessman, but over time, we notice that some people have a better chance at being...June 23, 2019