What the Options Market Tells Us About Netflix
Deep-pocketed investors have adopted a bullish approach towards Netflix (NASDAQ:NFLX), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NFLX usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 142 extraordinary options activities for Netflix. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 41% leaning bullish and 40% bearish. Among these notable options, 45 are puts, totaling $2,143,065, and 97 are calls, amounting to $7,482,175.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $5.0 to $890.0 for Netflix during the past quarter.
Volume & Open Interest Development
In today's trading context, the average open interest for options of Netflix stands at 439.65, with a total volume reaching 15,921.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Netflix, situated within the strike price corridor from $5.0 to $890.0, throughout the last 30 days.
Netflix Call and Put Volume: 30-Day Overview
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | CALL | SWEEP | NEUTRAL | 08/02/24 | $12.15 | $11.9 | $12.15 | $645.00 | $111.7K | 234 | 1.1K |
| NFLX | PUT | TRADE | BULLISH | 01/17/25 | $54.05 | $53.3 | $53.3 | $650.00 | $101.2K | 1.1K | 24 |
| NFLX | PUT | TRADE | BULLISH | 06/20/25 | $101.35 | $100.1 | $100.1 | $700.00 | $100.1K | 78 | 12 |
| NFLX | CALL | TRADE | BULLISH | 11/15/24 | $54.4 | $54.35 | $54.4 | $640.00 | $92.4K | 45 | 38 |
| NFLX | PUT | TRADE | BULLISH | 11/15/24 | $45.4 | $45.05 | $45.05 | $650.00 | $85.5K | 67 | 3 |
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 more than 275 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.
After a thorough review of the options trading surrounding Netflix, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Netflix
- Currently trading with a volume of 1,642,808, the NFLX's price is down by -0.6%, now at $643.59.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 85 days.
Expert Opinions on Netflix
In the last month, 5 experts released ratings on this stock with an average target price of $705.0.
- An analyst from Bernstein persists with their Market Perform rating on Netflix, maintaining a target price of $625.
- Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on Netflix with a target price of $775.
- Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Netflix with a target price of $710.
- Maintaining their stance, an analyst from Rosenblatt continues to hold a Neutral rating for Netflix, targeting a price of $635.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Netflix, targeting a price of $780.
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.