Netflix shares have been on fire this year, up 107 percent. As the company gears up to report earnings in a little more than a week, one trader is betting the rally could continue.
Todd Gordon, founder of TradingAnalysis.com, noted that Netflix shares are in a “very nice uptrend” ahead of its report on July 16. He wants to get long the stock using options ahead of the event. Here’s how he’s doing it:
The trade: Gordon is suggesting buying NFLX July monthly 375/370 put spread for about $1.80.
Bottom line: Gordon sees Netflix rallying on the heels of its earnings report on July 16.