Netflix's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bearish stance on Netflix 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 71 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 49% bullish and 50%, bearish.

Out of all of the special options we uncovered, 14 are puts, for a total amount of $1,395,417, and 57 are calls, for a total amount of $4,057,689.

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 $5.0 to $1325.0 for Netflix over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Netflix stands at 896.48, with a total volume reaching 18,301.00. 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 $1325.0, throughout the last 30 days.

Netflix Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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 1,401,290, the price of NFLX is down by -0.06%, reaching $490.24.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 25 days from now.

Professional Analyst Ratings for Netflix

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $523.75.

• Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for Netflix, targeting a price of $525.
• Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Netflix, targeting a price of $550.
• An analyst from Wedbush has revised its rating downward to Outperform, adjusting the price target to $525.
• An analyst from DZ Bank downgraded its action to Hold with a price target of $495.

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.