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#SaxoStrats - Buying Netflix straddle

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Netflix on average sees around 10% volatility following its quarterly results.
Saxo Bank's Head of Equity Strategy Peter Garnry explains how he's buying the May 15 (expiry May 15) USD 475.00 Straddle to play the earnings release.

Entry: Buy the May15 USD 475.00 Straddle at 56.50
Buy the May15 475 Call at USD 27.50
Buy the May15 475 Put at USD 29.00
For one Straddle you pay a premium of USD 56.50 X 100 shares =  USD 5,650.

The trade is aimed at a market gap opening up or down significantly after the earnings release, when volatility should spike up and the straddle will become more expensive.