This sounds terrible. I can't find option data since they just had a split, but 40% sounds incredibly high even if the options don't expire. Furthermore the growth phase for NFLX likely has peaked, so what is the point in buying illiquid options? Can employees even sell these options?
Furthermore at-the-market strike prices give you the least amount of leverage. What is the point of accepting the risk of complete loss and illiquidity when you can put up just 2.5x more and buy the damn shares outright?
Comments
This sounds terrible. I can't find option data since they just had a split, but 40% sounds incredibly high even if the options don't expire. Furthermore the growth phase for NFLX likely has peaked, so what is the point in buying illiquid options? Can employees even sell these options?
Furthermore at-the-market strike prices give you the least amount of leverage. What is the point of accepting the risk of complete loss and illiquidity when you can put up just 2.5x more and buy the damn shares outright?