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 116 uncommon options trades for Netflix.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 37%, bearish.
Out of all of the special options we uncovered, 35 are puts, for a total amount of $2,100,982, and 81 are calls, for a total amount of $7,799,333.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $50.0 to $1340.0 for Netflix during the past quarter.
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 $50.0 to $1340.0 in the last 30 days.
Netflix Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | CALL | SWEEP | BULLISH | 12/27/24 | $8.9 | $8.7 | $8.9 | $945.00 | $450.3K | 103 | 32 |
| NFLX | CALL | SWEEP | BEARISH | 03/21/25 | $166.25 | $163.35 | $163.35 | $770.00 | $163.3K | 801 | 12 |
| NFLX | PUT | TRADE | BEARISH | 01/16/26 | $150.05 | $148.55 | $149.56 | $980.00 | $149.5K | 6 | 10 |
| NFLX | CALL | TRADE | NEUTRAL | 01/17/25 | $684.5 | $682.1 | $683.35 | $230.00 | $136.6K | 480 | 2 |
| NFLX | CALL | TRADE | BEARISH | 12/13/24 | $114.55 | $112.5 | $113.3 | $800.00 | $113.3K | 215 | 160 |
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 more than 280 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.
After a thorough review of the options trading surrounding Netflix, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Netflix
- With a trading volume of 1,665,294, the price of NFLX is down by -2.27%, reaching $913.5.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 43 days from now.
Expert Opinions on Netflix
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $982.0.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from B of A Securities has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $1000. * An analyst from Canaccord Genuity has decided to maintain their Hold rating on Netflix, which currently sits at a price target of $940. * Maintaining their stance, an analyst from Citigroup continues to hold a Neutral rating for Netflix, targeting a price of $920. * An analyst from Wedbush downgraded its action to Outperform with a price target of $950. * Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Netflix with a target price of $1100.
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.
