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Goldman's advice to buy Netflix calls

|Includes: Netflix, Inc. (NFLX)

That looks like good business for Goldman. It might be that they lend their inventory of Netflix stocks to short sellers (for a fee). Then they upgrade the stock to "buy" with a high target price and tell investors they should buy call options on the stock (from them), for which they already have the hedge in form of the stocks, that they have lend to short sellers. That way they generate hefty fees on both sides of the trade, without any risk and they couldn't care less who looses money, the short sellers or the options investors, who followed their advice. No wonder Goldman is the most profitable Wallstreet firm.
However, that doesn't mean following their advice will help investors to make money.
Netflix jumped on short covering following positive news. There is nothing unusal in such bounces in highly shorted stocks. That doesn't make the stock a good investment.