Spotlight on Netflix: Analyzing the Surge in Options Activity

Deep-pocketed investors have adopted a bullish 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 9 extraordinary options activities for Netflix. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 44% leaning bullish and 33% bearish. Among these notable options, 4 are puts, totaling $113,551, and 5 are calls, amounting to $257,610.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $440.0 to $700.0 for Netflix over the last 3 months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Netflix's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Netflix's significant trades, within a strike price range of $440.0 to $700.0, over the past month.

Netflix 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
NFLX CALL TRADE BULLISH 09/20/24 $25.4 $24.35 $25.4 $700.00 $104.1K 1.5K 41
NFLX CALL TRADE BEARISH 06/14/24 $10.0 $8.2 $8.37 $642.50 $50.2K 120 19
NFLX CALL TRADE BEARISH 01/17/25 $101.0 $97.85 $97.85 $600.00 $39.1K 1.9K 4
NFLX PUT SWEEP BEARISH 06/14/24 $10.85 $10.15 $10.85 $642.50 $32.5K 1.0K 79
NFLX CALL TRADE BULLISH 06/14/24 $16.9 $16.25 $16.9 $625.00 $32.1K 157 19

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

Current Position of Netflix

  • Currently trading with a volume of 122,680, the NFLX's price is down by -0.72%, now at $636.87.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 37 days.

Professional Analyst Ratings for Netflix

5 market experts have recently issued ratings for this stock, with a consensus target price of $611.8.

  • An analyst from Rosenblatt persists with their Neutral rating on Netflix, maintaining a target price of $554.
  • Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Netflix with a target price of $700.
  • An analyst from Needham downgraded its action to Buy with a price target of $700.
  • Reflecting concerns, an analyst from Jefferies lowers its rating to Buy with a new price target of $655.
  • Maintaining their stance, an analyst from Benchmark continues to hold a Sell rating for Netflix, targeting a price of $450.

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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Date of Trade
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Posted In: OptionsMarketsBZI-UOA
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