A Big Investor in Netflix Stock Has Bought a Large Amount of Call Options - A Bullish Signal

A large tranche of Netflix Inc (NFLX) call options that are in-the-money (ITM) shows that an institutional investor has taken a large position using the call options with just 51 days to expiration. That indicates that the investor has a bullish outlook on the stock, and probably has faith that the company will show membership growth and good free cash flow growth in Q2.

This trade can be seen in Barchart's Unusual Stock Options Activity Report today. The tranche that was bought was 3.7% in-the-money (ITM), which means that the call option strike price of $415.00 per share is actually below today's stock price of $431.00. That usually implies that the initiating investor in the call option trade is long the calls - i.e., they bought the calls.