Earn 9.5% Income on Netflix Stock Using This Options Play
A cash-secured put strategy on NFLX lets you pocket a 9.5% yield and buy shares at a discount if they drop.
Netflix stock has been on a tear, and if you've been waiting for a pullback before jumping in, there's a smarter move than just sitting on cash. You can get paid while you wait — and we're talking a 9.5% income stream that's yours to keep no matter what happens next.
The play is a cash-secured put. You sell a put option on NFLX at a strike price well below where shares are trading right now. The premium you collect is yours immediately. If Netflix never drops to that level, you walk away with the income and move on. If it does fall to your strike, you buy the shares at that lower price — exactly where you wanted in anyway.
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That's the beauty of this setup. You're not gambling on direction. You're getting compensated for your willingness to own NFLX at a price you already like. The 9.5% yield is the market paying you for that patience and conviction. In a world where savings accounts are still barely keeping up with inflation, that's a real number worth chasing.
The risk? If Netflix craters hard and fast, you're on the hook to buy shares at the strike price even if the stock is trading significantly lower. This isn't a hedge — it's a commitment. Make sure you actually want to own NFLX at that level and that you have the cash set aside to cover the purchase. Position sizing matters here.
For traders who are bullish on Netflix long-term but think the current price is a little rich, this strategy checks every box: income now, potential entry at a discount later. That's a trade worth knowing about. Continue reading at Yahoo.
