Get Paid 9.5% To Wait For NFLX Stock To Go On Sale

Here is a way to collect a hefty income stream from Netflix stock right now, which you keep no matter what, while lining up a chance to buy shares at a serious discount if they ever get that cheap.

Netflix (NFLX) has had a rough ride, with the stock trading around $68.89 after a punishing year that has seen it fall about 45% from its 52-week high. For investors who see a potential rebound but are wary of jumping in now, this kind of volatility creates an opportunity. It allows you to generate an immediate cash yield by agreeing to buy the stock only if it falls to a much lower price, a proposition laid out below.

9.5% annualized yield at a 33% margin of safety, by selling put options.

• Sell a put option on NFLX expiring 6/17/2027, with a strike price of $48.
• Collect roughly $194 in premium per contract (each contract covers 100 shares).
• That works out to about 4.5% annualized on the $4,800 of cash you set aside to secure the trade.
• Park that cash in a money market or savings account earning roughly 5.0%, and your total yield climbs to about 9.5%.
• And if NFLX falls below $48, you buy it at $48, an effective entry near $46.06 a share after the premium, about a 33% discount to today’s $68.89.

Both Outcomes Put Cash In Your Pocket

If NFLX stays above $48 through 6/17/2027, the put expires worthless, and you simply keep the full $194 premium. That is about 4.0% on the $4,800 you set aside over 329 days, cash that might otherwise earn you 5.0% or so. You never buy the stock and keep the income, free to do it again.

If NFLX closes below $48, you are assigned and buy 100 shares at $48. The $194 premium you already pocketed lowers your effective cost to about $46.06 a share, roughly a 33% discount to today’s price, though if the stock has fallen further by then, you would be holding a paper loss.

So what happens if NFLX really does close below $48, and you are the one buying? Then everything rests on a single question.

How Comfortable Would You Be Holding NFLX?

This trade only makes sense if you’d be a happy owner of the business at that discounted price. So, what kind of company would you be getting into? On one hand, management paints a picture of a growth story with a massive runway. The company is still in the early innings of global penetration, reaching fewer than 45% of what it considers its addressable households. It argues it has captured just 7% of a $670 billion addressable revenue market, with a goal to “sustain healthy revenue and profit growth.” This is the core of the bull case: a dominant, profitable leader that is still, in its own words, “just getting started.”

On the other hand, the market’s recent skepticism isn’t coming from nowhere. Analysts on the company’s latest call highlighted that guidance for the third quarter suggests revenue growth is slowing, and some see a maturing business where accelerating content spending may not translate into the growth it once did. There are also persistent questions about user engagement, with observers noting that “reported viewing hours per member have softened.” Management counters by pointing to its own internal quality metrics, which it says are improving, but it declines to share the details, calling them a “competitive advantage.” That asks investors to trust the company’s secret scorecard. Ultimately, the bull case hinges on the idea that the real engine driving Netflix stock is its earnings power, which must convert its expanding content slate – including new forays into areas like live events – into more subscribers and revenue.

The appeal of this trade is that you are paid to wait for the answer. You collect your income upfront, and if the stock never drops to your price, you simply keep the cash. If it does, you become an owner at a significant discount to today’s price. The one number to watch is revenue growth. Management is targeting 14% top-line growth for the full year, and their ability to hit that number will determine if the growth story has a new chapter or is nearing its end.

Wondering whether another stock offers a better yield, or what this same trade would pay on a name you already like? You can screen the latest cash-secured put yields across the market for yourself. And if it is exposure to communication services as a whole you want rather than this one name, a communication services ETF like XLC covers that single sector. Going broader than any one sector, to a quality-first mix across the whole market, is where the portfolio below comes in.

Before You Commit To Buying More Of One Stock, Know How Much You Already Carry

A put sale is a promise to add to a single name, and the first thing a professional checks before that promise is existing exposure, because concentration is what turns an income trade into an oversized bet. That check is exactly what the Trefis Wealth team provides, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.