Tesla, Netflix, and ON Semiconductor: 3 Unusually Active Cash-Secured Put Options to Sell Now

Economic Indicators - The University of Michigan's U.S. Consumer Sentiment Index for December and the Core PCE price index for September are expected to show little movement, indicating a stable economic outlook [1][2] - Despite slight improvements in consumer sentiment, inflation remains a concern, although tariffs are causing less disruption than initially anticipated [2] Federal Reserve and Market Outlook - Investors are anticipating a potential rate cut at the upcoming Federal Reserve meeting on December 10, with the probability exceeding 80%, which is viewed positively for stock markets [3] - The Shiller P/E ratio is currently above 40, the highest since 1999, suggesting that share prices are relatively inflated [4] Options Trading Insights - There were 1,341 unusually active options trades, particularly in put options, indicating investor interest in hedging or income generation strategies [3] - Netflix (NFLX) had 11 put options with strike prices ranging from $218 to $70, all showing a Vol/OI ratio of 1.45 or higher, indicating significant trading activity [6] Investment Strategy - Selling cash-secured puts on Netflix can generate income while providing a better entry point for long-term investment, with a specific put option showing a 14.75% OTM and a 4.9% annualized return [7] - The probability of Netflix's share price trading above the breakeven price of $87.66 is high at 92.24%, making it an attractive option for investors [7][8]