As of writing this, NFLX is down 14% at 343 dollars a share on disappointing revenue and subscriber growth, and weak subscriber growth estimates into Q3. This decline in price puts our 400 dollar put position 57 dollars in the money which will more than offset the loss on the call position. Further more the options bought expired 7/20 since we planned on selling them at market open. The cheap short expiration options allowed to limit the loss taken on either direction. NFLX tendency for large dollar moves after hours makes it a great candidate for straddles as it allows the winning position to outweigh the loosing position and be sold for an immediate profit
NFLX 100 ma is at 338, a vital level to watch for a test and point of reversal.