NFLX Short Call — Sep 18, 2026
Trade Setup
Current Stock Price
$73.50
Entry Price
$73.50
Target Price
$36.75
Stop Loss
$147.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 85C
Risk / Reward
Max Loss
$17000.00
Max Profit
$73.50
Analysis
NFLX (Netflix, Inc. - Common Stock) presents a short call opportunity with moderately elevated implied volatility. IV Rank 29. IV 4405.0% trades 1967.0pp above 30-day HV (2438.0%). This setup favors net premium sellers.
Sell the $85 call for $0.73 credit. Naked single-leg exposure; collect premium from time decay if NFLX stays below the strike. Underlying ~$74.74, 39 DTE. Max profit $74 per contract, max loss $17000, 0.4% return on risk, 84% POP. Breakeven at $85.73.
Management: take profit at ~50% of max profit ($37). Cut at 2x credit ($147 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: NFLX @ ~$74.79 Expiration: Sep 18, 2026 (39 DTE) Net credit (entry): ~$73.50 per spread Legs:
- Sell NFLX Sep 18, 2026 $85 Call (delta 0.16, mid $0.73)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.1% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($37). Cut loss if position reaches 2x credit received ($147 loss). Roll if tested with > 14 DTE remaining.