Netflix's Options Frenzy: What You Need to Know

Deep-pocketed investors have adopted a bearish approach towards Netflix 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 49 extraordinary options activities for Netflix. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 36% leaning bullish and 42% bearish. Among these notable options, 18 are puts, totaling $1,600,516, and 31 are calls, amounting to $1,790,732.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $230.0 and $1110.0 for Netflix, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $230.0 to $1110.0 in the last 30 days.

Netflix Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
NFLX PUT SWEEP NEUTRAL 06/21/24 $75.65 $69.5 $72.57 $680.00 $435.4K 4 0
NFLX PUT SWEEP NEUTRAL 06/21/24 $57.85 $52.5 $55.17 $660.00 $331.0K 103 0
NFLX CALL TRADE NEUTRAL 05/10/24 $92.6 $86.15 $89.03 $520.00 $213.6K 154 66
NFLX CALL TRADE NEUTRAL 05/10/24 $87.6 $81.1 $83.96 $525.00 $201.5K 155 42
NFLX PUT TRADE NEUTRAL 06/21/24 $88.7 $86.4 $87.55 $700.00 $175.1K 0 20

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.

Having examined the options trading patterns of Netflix, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is Netflix Standing Right Now?

  • Trading volume stands at 2,300,733, with NFLX's price up by 0.87%, positioned at $611.26.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 70 days.

Expert Opinions on Netflix

5 market experts have recently issued ratings for this stock, with a consensus target price of $674.0.

  • An analyst from Morgan Stanley has decided to maintain their Overweight rating on Netflix, which currently sits at a price target of $700.
  • An analyst from Pivotal Research has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $800.
  • An analyst from Canaccord Genuity has revised its rating downward to Hold, adjusting the price target to $585.
  • Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Netflix, targeting a price of $600.
  • An analyst from Macquarie has decided to maintain their Outperform rating on Netflix, which currently sits at a price target of $685.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Netflix, Benzinga Pro gives you real-time options trades alerts.

Market News and Data brought to you by Benzinga APIs
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Posted In: OptionsMarketsBZI-UOA
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