Disclaimer: The trades discussed in this blog reflect the author’s personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
Today I opened a long-dated, directional position on Netflix (NFLX) by purchasing a June 2027 LEAP call at the 104 strike. This is a simple “buy and hold” structure for me, it's a stock replacement strategy. Here it is:
Why NFLX?
Today everyone is focused on the traditional streaming synergies after the Warner Bros acquisition announcement, but I’m more interested in what’s not being discussed enough: Warner Bros’ push into game development. Netflix has been openly expanding into gaming for years, and folding in a studio pipeline with real IP potential could create a multiplier effect the market isn’t fully pricing in. I know it's risky to buy a company with a 40x P/E, but I feel today's M&A operation is changing the rules of the game.
Right now investors seem to be doing a basic sum-of-parts valuation, but there’s optionality here that goes beyond that arithmetic. This is what the current price chart looks like:
This is a small LEAP position, and my plan is simple: open it and let time work. I won’t manage it actively unless something fundamentally changes. You can find this operation in my public trade log as usual.
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education