Core Insights - Netflix, Inc. (NFLX) stock has declined 27.9% from its peak in late October 2025, with investors showing skepticism towards its proposed acquisition of Warner Bros. Discovery [1] - As of January 9, 2026, NFLX closed at $89.46, down 4.59% year-to-date from $93.76 at the end of 2025 [1] Stock Performance - The stock has seen a significant drop, leading to increased put option premiums, making them appealing for short-sellers [3] - The delta ratio for the $85.00 put option indicates a 33% chance that NFLX could fall to that price within the next month [7] Options Strategy - Shorting the $85.00 put option with a midpoint premium of $2.66 offers a yield of 3.13% for a one-month expiry [4][5] - An investor can secure $8,500 to sell a one-month put contract at $85.00, receiving $266 as income [6] - A more conservative approach would be to short the $83.00 put option, which has a lower delta ratio of 25% and offers a premium of $1.93, yielding 2.33% [7] Risk Management - The breakeven point for the $83.00 put option is $81.07, which is 9.8% below the current stock price, indicating that NFLX must fall below this level for an unrealized loss to occur [9] - Investors can also consider selling out-of-the-money covered calls to mitigate potential losses if they acquire shares [10]