How We Made Money On Netflix Using Options
Wednesday, September 23, 2026 · Johnny Hopkins
During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Carlisle discussed How We Made Money On Netflix Using Options. Here’s an excerpt from the episode:
Netflix. So Netflix has given kind of two big windows to get involved on the option side of things. The first one, if you remember, Toby, was when they made that bid for Warner Brothers.
And the market hated that deal because there’s so much debt in it. And I mean, it just introduced kind of a lot of risks to Netflix. And so that gave a window where the stock sold off pretty hard.
And in other businesses that I’m in, we definitely took advantage of that. The value options letter wasn’t set up yet, but we had another recent window about a couple months back now where the stock sold off a little bit again. And so when the stock was at 66.78, we played it very conservatively on July 17th, we sold a $58 put for $3.25 a share. So we were targeting just under 6% on our capital. You know, this is about a half year long trade. And so that’s just under 12% annualised.
But once again, what ended up happening is we held the trade for about two months, and we were able to get out the vast majority of the profit, $273 of 325. So we exited with 29.8% annualised, and we freed up that capital. So we earned 5% in just 61 of the 182 days that we were targeting.
[Tobias] So great work.Want to see the actual cash-secured put and covered call trades Tobias Carlisle and Tim Travis send subscribers each week?
Value Options Letter combines value investing with conservative Buffett-style options strategies, including cash-secured puts, covered calls and disciplined “get paid to wait” opportunities on undervalued businesses.
Disclosure: This is an affiliate link. If you subscribe, I may earn a commission at no additional cost to you. Value Options Letter is a research publication and does not provide personalized investment advice.