Covered calls on Netflix are unusually attractive

Oct. 26, 2018

Options Backtesting Results

Historical average return: +$1,475.76 (backtested over 9.4 years)
Historical success probability: 76.2%


The market sell off has hit technology stocks particularly hard this month, and while implied volatility has risen considerably across the board, it is notable that the prices for new call options on many flagship tech names have surged much more than in other recent sell offs. This market dynamic presents an unusual opportunity for covered call writing. Netflix is a key example, and our backtesting analysis shows that today's pricing is unusually attractive. More details inside.

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