Behind the Scenes of Netflix's Latest Options Trends

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 27 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 59%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $71,152, and 25 are calls, for a total amount of $2,099,971.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $460.0 to $600.0 for Netflix over the last 3 months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $460.0 to $600.0 in the last 30 days.

Netflix Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

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.

Following our analysis of the options activities associated with Netflix, we pivot to a closer look at the company's own performance.

Netflix's Current Market Status

• Trading volume stands at 1,340,589, with NFLX's price up by 2.27%, positioned at $567.13.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 62 days.

Professional Analyst Ratings for Netflix

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $538.0.

• An analyst from UBS has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $560.
• An analyst from Macquarie upgraded its action to Outperform with a price target of $595.
• An analyst from Piper Sandler persists with their Neutral rating on Netflix, maintaining a target price of $475.
• An analyst from B of A Securities has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $585.
• An analyst from Barclays has decided to maintain their Equal-Weight rating on Netflix, which currently sits at a price target of $475.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Netflix, Benzinga Pro gives you real-time options trades alerts.