An options strategy Netflix Inc.’s stock known as a straddle on is priced Tuesday for a much bigger than usual one-day move after the streaming video giant reports second-quarter results after the closing bell. A straddle is a pure volatility play in which bullish (calls) and bearish (puts) options with at-the-money strikes and expirations at the end of the week are purchased simultaneously. Straddles are currently priced so buyers will start making money only if the stock moves at least $27.45 in either direction on Wednesday, according to data provided by Matt Amberson, principal at Option Research & Technology Services…
Source: Marketwatch
