The Options Play on Netflix


The following video is part of a special series in which Motley Fool analyst Austin Smith and "Options Whiz" Alex Pape discuss how to make 2012 the year YOU master the market.

In this edition, Austin and Alex talk Netflix. Austin likes the company's long-term potential but would like to insulate himself from what's been a wild ride lately with a company that still has big downside risk. To counter this, Alex offers an options strategy to limit downside while offering attractive gains.

For more details on how to trade Netflix using similar options strategies with as much potential or more, just click here. You'll be directed to the Motley Fool Options Whiz -- our interactive "Options U" designed to teach you to trade options sensibly, with a minimum of risk, and all the resources of The Motley Fool behind you -- all 100% FREE!

At the time thisarticle was published Austin Smith and Alex Pape do not own shares of the companies listed above. The Motley Fool owns shares of Google,, and Apple.Motley Fool newsletter serviceshave recommended buying shares of Netflix, Apple, Google,, and Coinstar.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published