Dan Deming's Options Trade Ahead Of Netflix's Earning

KKM Financial Managing Director Dan Deming shared with the viewers of Bloomberg Markets his options strategy in Netflix, Inc. (NASDAQ: NFLX). The company is scheduled to report earnings on Tuesday and Deming wants to use a risk-reversal strategy ahead of earnings.

He thinks there might be a little bit more downside in the name so he wants to sell a put and buy a call. With the risk-reversal strategy, he wants to take advantage of a potential down move after the earnings and a rally after that.