Netflix (NFLX) trades at about $80, and its own options put a price on how far that can travel over the twelve months ahead: a floor near $54.21 and a ceiling near $119. The options market is charging nothing unusual for that range. Ordinary, for Netflix, already means a range wide enough to take a third of your money.
Your $10,000 Stake Could Be Worth $6,750 Or $14,800 A Year Out
From today's price the ceiling is about 48% higher and the floor about 33% lower. A $10,000 stake could end the year near $6,750 or near $14,800. The upside is larger in dollars for a mechanical reason: a share price stops at zero and has no top.
Those bounds are odds rather than a forecast: roughly a two-in-three chance of finishing between them, and about a 16% chance of ending beyond each one. Nothing in that says which way. It says how much room a holder has to give, and Netflix has needed that room before.
Netflix Just Had A Year Almost This Volatile
#year #price #floor #ceiling
Your $10,000 Stake Could Be Worth $6,750 Or $14,800 A Year Out
From today's price the ceiling is about 48% higher and the floor about 33% lower. A $10,000 stake could end the year near $6,750 or near $14,800. The upside is larger in dollars for a mechanical reason: a share price stops at zero and has no top.
Those bounds are odds rather than a forecast: roughly a two-in-three chance of finishing between them, and about a 16% chance of ending beyond each one. Nothing in that says which way. It says how much room a holder has to give, and Netflix has needed that room before.
Netflix Just Had A Year Almost This Volatile
#year #price #floor #ceiling
2 months ago
