Netflix’s Options Frenzy: What You Need to Know

Mar 25, 2024

Investors with a lot of money to spend have taken a bearish 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 38 uncommon options trades for Netflix.

This isn’t normal.

The overall sentiment of these big-money traders is split between 42% bullish and 57%, bearish.

Out of all of the special options we uncovered, 16 are puts, for a total amount of $637,669, and 22 are calls, for a total amount of $1,329,960.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $300.0 to $700.0 for Netflix over the recent three months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Netflix’s options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Netflix’s substantial trades, within a strike price spectrum from $300.0 to $700.0 over the preceding 30 days.

Netflix Option Activity Analysis: Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
NFLX CALL TRADE BULLISH 05/17/24 $640.00 $272.9K 1.2K 86
NFLX CALL SWEEP BEARISH 12/18/26 $700.00 $219.1K 39 0
NFLX PUT SWEEP NEUTRAL 09/20/24 $580.00 $96.4K 176 70
NFLX CALL TRADE BULLISH 05/17/24 $640.00 $85.1K 1.2K 2
NFLX CALL SWEEP NEUTRAL 05/17/24 $640.00 $81.7K 1.2K 61

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.

Following our analysis of the options activities associated with Netflix, we pivot to a closer look at the company’s own performance.

Netflix’s Current Market Status

  • With a volume of 601,838, the price of NFLX is down -0.22% at $626.65.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 24 days.

Expert Opinions on Netflix

In the last month, 5 experts released ratings on this stock with an average target price of $683.0.

  • Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on Netflix with a target price of $725.
  • An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Netflix, which currently sits at a price target of $640.
  • An analyst from Keybanc persists with their Overweight rating on Netflix, maintaining a target price of $705.
  • An analyst from Citigroup has decided to maintain their Neutral rating on Netflix, which currently sits at a price target of $660.
  • An analyst from UBS has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $685.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Netflix with Benzinga Pro for real-time alerts.

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