How Benchmark's Kevin Kelly Is Playing Netflix

The video discusses the expanded Fang index, which includes options and futures, and its components like Alibaba, Baidu, NVIDIA, Tesla, and Twitter. It explains the difference between European and American style options and how the Fang Plus index can be used in investment strategies. The video also covers a specific investment strategy involving Netflix, highlighting its market dynamics and potential for capital appreciation.

What is a key feature of European style index options?

• They are only available for American stocks.

• They offer higher premiums than American options.

• They cannot be exercised early.

• They can be exercised early.

Which of the following companies is NOT included in the Fang Plus index?

• Baidu

• Microsoft

• Alibaba

• Tesla

What is one of the strategic advantages of using Fang Plus index options?

• They are only suitable for short-term investments.

• They offer a way to leverage long positions.

• They allow for early exercise of options.

• They provide exposure to a single company.

What is the main reason Netflix has been insulated from price to earnings concerns?

• It has a low cash burn rate.

• It has been reinvesting in its business.

• It has a high dividend yield.

• It is not part of the Fang Plus index.

What is the cost basis for the Netflix stock acquisition strategy mentioned?

• $420

• $343

• $500

• $300