From Yahoo Finance: 2025-04-30 10:44:00

Investors are “fading the bid” by shorting Netflix (NFLX) stock, according to Don Kaufman. He believes NFLX is at its peak and will see a significant downturn, especially if a U.S. recession hits. Kaufman’s options play involves buying $1,000 puts and selling $990 puts, banking on NFLX dropping.

Kaufman warns of a potential “gamma squeeze” on NFLX as traders buy many calls, pushing market makers to buy the stock. He predicts a cycle ending in a sharp downturn for NFLX, especially in a recession. Kaufman’s bearish options play on NFLX involves $1,000 puts expiring on July 18.

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Read more: Longtime Trader Unveils Bearish Options Play on NFLX