Check Out What Whales Are Doing With NFLX

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 32 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 28% bullish and 34%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $690,235, and 25 are calls, for a total amount of $1,152,233.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $420.0 to $810.0 for Netflix over the recent three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Netflix options trades today is 579.4 with a total volume of 4,011.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Netflix's big money trades within a strike price range of $420.0 to $810.0 over the last 30 days.

Netflix Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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

• Currently trading with a volume of 900,114, the NFLX's price is up by 0.83%, now at $681.46.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 30 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 $716.4.

• An analyst from Wedbush has revised its rating downward to Outperform, adjusting the price target to $725.
• An analyst from Loop Capital has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $750.
• An analyst from Evercore ISI Group persists with their Outperform rating on Netflix, maintaining a target price of $700.
• Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for Netflix, targeting a price of $707.
• Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $700.

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.