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 134 uncommon options trades for Netflix.
This isn't normal.
The overall sentiment of these big-money traders is split between 41% bullish and 46%, bearish.
Out of all of the special options we uncovered, 67 are puts, for a total amount of $7,661,040, and 67 are calls, for a total amount of $4,619,977.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $5.0 to $880.0 for Netflix over the recent three months.
Volume & Open Interest Development
In today's trading context, the average open interest for options of Netflix stands at 555.05, with a total volume reaching 21,397.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Netflix, situated within the strike price corridor from $5.0 to $880.0, throughout the last 30 days.
Netflix Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | PUT | TRADE | BULLISH | 01/16/26 | $57.5 | $53.85 | $55.25 | $550.00 | $1.6M | 507 | 0 |
| NFLX | PUT | TRADE | NEUTRAL | 09/20/24 | $98.65 | $96.4 | $97.5 | $725.00 | $195.0K | 394 | 60 |
| NFLX | CALL | TRADE | BEARISH | 01/16/26 | $141.45 | $140.7 | $140.7 | $600.00 | $154.7K | 199 | 21 |
| NFLX | PUT | TRADE | BEARISH | 12/20/24 | $72.2 | $72.0 | $72.2 | $675.00 | $144.4K | 44 | 41 |
| NFLX | CALL | TRADE | BEARISH | 03/21/25 | $72.65 | $71.85 | $71.85 | $640.00 | $129.3K | 66 | 36 |
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 275 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.
In light of the recent options history for Netflix, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Where Is Netflix Standing Right Now?
- With a trading volume of 2,359,337, the price of NFLX is down by -0.7%, reaching $626.97.
- Current RSI values indicate that the stock is may be oversold.
- Next earnings report is scheduled for 79 days from now.
What Analysts Are Saying About Netflix
5 market experts have recently issued ratings for this stock, with a consensus target price of $737.4.
- Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Netflix, targeting a price of $780.
- An analyst from Keybanc persists with their Overweight rating on Netflix, maintaining a target price of $735.
- An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Netflix, which currently sits at a price target of $710.
- An analyst from Macquarie persists with their Outperform rating on Netflix, maintaining a target price of $695.
- Maintaining their stance, an analyst from Argus Research continues to hold a Buy rating for Netflix, targeting a price of $767.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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