Unusual Options Volume Validates Enthusiasm for Netflix (NFLX)

Sparking one of the more remarkable comebacks in recent memory, content streaming service Netflix (NFLX) in the first half of 2022 appeared to be on life support. In October of the prior year, the weekly average price of NFLX stock got very close to hitting $700. By late January, this metric dropped to below $400 and by early May, it fell to below $200.

Fortunately, management refused to give up, making important adjustments to the new business realities. Among the more controversial changes involved Netflix’s about-face regarding password sharing. Previously, management appeared to encourage the practice. With a new policy in place, users of the streaming service can still share their access with those outside their household. It’s just that now, they must pay an additional $8 per month.