Netflix, Inc. (NFLX) Covered Calls

Netflix, Inc. covered calls Netflix, Inc. is a leading global entertainment services provider offering a vast library of TV series, films, and games across various genres and languages. The company operates through a subscription-based model, delivering streaming content to members in over 190 countries. Netflix focuses on producing original programming, expanding its ad-supported membership tier, and integrating live events and sports into its platform to drive engagement and long-term membership growth.

You can sell covered calls on Netflix, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for NFLX (prices last updated Fri 4:16 PM ET):

Netflix, Inc. (NFLX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
76.87 +1.01 76.83 76.87 36.1M 30 321
Covered Calls For Netflix, Inc. (NFLX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 77 1.36 75.51 1.8% 82.1%
Mar 20 77 3.65 73.22 5.0% 50.7%
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Core Business and Products

Netflix, Inc. (NFLX) is the world's pioneer in the streaming entertainment industry. As of early 2026, the company has surpassed 325 million paid memberships, serving a global audience approaching one billion people. Its business model has evolved from a pure subscription service to a hybrid monetization engine that includes advertising, live programming, and interactive gaming.

  1. Streaming Entertainment: The core of the business remains its vast library of licensed and original content. Netflix produces and distributes series, feature films, and documentaries in over 30 languages. In 2026, a significant portion of its content investment is directed toward localized originals that drive high engagement in international markets.
  2. Advertising Tier: The "Standard with Ads" plan has become a primary growth driver. By 2026, this tier accounts for nearly 45% of all viewing hours in eligible markets. Netflix utilizes a sophisticated programmatic ad infrastructure to deliver targeted, high-value commercial breaks to its 190 million monthly active ad-tier viewers.
  3. Live Programming and Sports: In a major strategic shift, Netflix began streaming WWE Raw exclusively in January 2026. This move into "appointment viewing" includes live comedy specials, reality TV reunions, and sporting events like the World Baseball Classic, aimed at reducing subscriber churn and commanding premium ad rates.
  4. Netflix Games: The company continues to expand its "cloud-first" gaming strategy, offering members a library of mobile and cloud-streamed games at no additional cost, leveraging popular intellectual property like "Squid Game" and "Stranger Things."

Competitive Landscape

The streaming landscape in 2026 is defined by intense competition and a trend toward massive consolidation:

  1. Global Streaming Giants: Netflix faces its most direct competition for viewer time from Amazon (Prime Video) and The Walt Disney Company (Disney+ and Hulu). While Netflix leads in standalone subscribers, Disney remains a formidable rival due to its ownership of high-value franchises like Marvel and Star Wars.
  2. Consolidation Plays: A defining narrative of 2026 is Netflix’s ongoing bid to acquire Warner Bros. Discovery. If successful, this merger would unite Netflix's distribution power with the deep prestige library of HBO and the DC Comics universe, directly challenging the scale of rivals like Apple (Apple TV+).
  3. Live and Legacy Rivals: In the race for live sports and ad dollars, Netflix competes with Alphabet (YouTube TV) and Comcast (Peacock). It also vies for household attention against Paramount Skydance, the entity formed following the 2025 merger of Paramount Global and Skydance.

Strategic Outlook and Innovation

Entering 2026, Netflix is prioritizing "monetization efficiency" over raw subscriber additions. The company is targeting a 31.5% operating margin this year, driven by the rough doubling of its advertising revenue to approximately $3 billion. A hallmark of its 2026 innovation is the integration of "Agentic AI" within its product experience—specifically using generative AI to create personalized trailers and localized dubbing that sounds identical to the original actors. Strategically, the potential acquisition of Warner Bros. Discovery represents a shift toward becoming a legacy-integrated media powerhouse, though management remains committed to the "flix" ethos of ease-of-use and high-quality recommendation algorithms. By focusing on "must-watch" live events and a robust 2026 slate including the final season of "Stranger Things," Netflix aims to solidify its position as the undisputed leader of the global digital entertainment economy.