Behind the Scenes of Netflix's Latest Options Trends
Investors with a lot of money to spend have taken a bullish stance on Netflix (NASDAQ:NFLX).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NFLX, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 50 uncommon options trades for Netflix.
This isn't normal.
The overall sentiment of these big-money traders is split between 44% bullish and 36%, bearish.
Out of all of the special options we uncovered, 18 are puts, for a total amount of $1,403,226, and 32 are calls, for a total amount of $2,204,493.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $5.0 to $1110.0 for Netflix over the recent three months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Netflix's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Netflix's whale activity within a strike price range from $5.0 to $1110.0 in the last 30 days.
Netflix 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | PUT | SWEEP | NEUTRAL | 07/19/24 | $30.75 | $30.05 | $30.43 | $677.50 | $608.2K | 32 | 0 |
| NFLX | CALL | SWEEP | BEARISH | 07/19/24 | $27.8 | $27.8 | $27.8 | $680.00 | $278.0K | 1.7K | 17 |
| NFLX | CALL | SWEEP | BULLISH | 09/20/24 | $676.5 | $674.1 | $675.28 | $5.00 | $270.1K | 60 | 4 |
| NFLX | CALL | TRADE | BULLISH | 09/20/24 | $203.0 | $203.0 | $203.0 | $480.00 | $203.0K | 174 | 0 |
| NFLX | CALL | TRADE | BULLISH | 07/19/24 | $12.05 | $11.65 | $11.9 | $730.00 | $117.8K | 477 | 118 |
About Netflix
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
In light of the recent options history for Netflix, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Where Is Netflix Standing Right Now?
- With a trading volume of 973,694, the price of NFLX is up by 0.41%, reaching $676.35.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 16 days from now.
Professional Analyst Ratings for Netflix
Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $731.0.
- An analyst from Loop Capital persists with their Buy rating on Netflix, maintaining a target price of $750.
- An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $700.
- Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Netflix with a target price of $707.
- Consistent in their evaluation, an analyst from Argus Research keeps a Buy rating on Netflix with a target price of $767.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Netflix options trades with real-time alerts from Benzinga Pro.