Netflix (NFLX) reports earnings on July 21st. Undoubtably the company will announce a stock split. NFLX last split in 2004 with the stock in 70s range. Now at 118, a split is coming for sure.
Can you profit from this? Yes! When is the last time a company announced a stock split and the stock declined? Never! At least I can't remember this ever happening.
Buying the stock here and selling the August 125 call option is the right play. This is referred to as a "covered call".
Make this options trade and thank me in 6 weeks.
Thursday, July 8, 2010
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