On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said that Netflix Inc (NASDAQ:NFLX) has been “one of the market’s darlings and leaders for a long time.” However, the stock has plummeted around 25% since the company reported “shocking” earnings.
He added that investors often want to give the market a couple of days to “sort out and digest what it’s seen.” Although the market has had time to do so, and it doesn’t seem like “Netflix is going to recover its mojo anytime soon,” Khouw said.
The stock has moved only about 3% after the steep downturn, and it seems like the stock “has found a new level,” he noted. Khouw added that people can try to “find a way to profit from this new level.”
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