Investors with a lot of money to spend have taken a bullish 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 44 uncommon options trades for Netflix.
This isn't normal.
The overall sentiment of these big-money traders is split between 50% bullish and 36%, bearish.
Out of all of the special options we uncovered, 17 are puts, for a total amount of $979,752, and 27 are calls, for a total amount of $3,125,553.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $5.0 to $890.0 for Netflix over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Netflix options trades today is 651.29 with a total volume of 3,863.00.
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 $5.0 to $890.0 over the last 30 days.
Netflix Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | CALL | TRADE | BULLISH | 09/20/24 | $244.0 | $242.9 | $244.0 | $400.00 | $732.0K | 138 | 30 |
| NFLX | CALL | TRADE | BEARISH | 09/20/24 | $304.0 | $301.8 | $302.5 | $340.00 | $605.0K | 166 | 20 |
| NFLX | CALL | SWEEP | BULLISH | 01/16/26 | $47.3 | $42.7 | $43.8 | $890.00 | $429.2K | 2.0K | 98 |
| NFLX | CALL | SWEEP | NEUTRAL | 01/17/25 | $638.45 | $631.6 | $634.77 | $5.00 | $317.2K | 798 | 6 |
| NFLX | PUT | TRADE | NEUTRAL | 09/20/24 | $82.8 | $79.3 | $81.05 | $725.00 | $202.6K | 70 | 138 |
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.
Having examined the options trading patterns of Netflix, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Current Position of Netflix
- With a trading volume of 897,675, the price of NFLX is up by 2.08%, reaching $646.28.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 64 days from now.
What Analysts Are Saying About Netflix
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $749.0.
- Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Netflix, targeting a price of $750.
- Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Netflix, targeting a price of $780.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Netflix, targeting a price of $780.
- Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on Netflix with a target price of $725.
- Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Netflix with a target price of $710.
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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