Netflix's Options Frenzy: What You Need to Know

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 24 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 37%, bearish.

Out of all of the special options we uncovered, 11 are puts, for a total amount of $959,772, and 13 are calls, for a total amount of $1,098,879.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $280.0 to $920.0 for Netflix during the past quarter.

Volume & Open Interest Development

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 $280.0 to $920.0 in the last 30 days.

Netflix Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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 280 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.

Current Position of Netflix

• With a volume of 154,334, the price of NFLX is down -0.99% at $764.42.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 91 days.

Expert Opinions on Netflix

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $819.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Guggenheim persists with their Buy rating on Netflix, maintaining a target price of $810. * Maintaining their stance, an analyst from Pivotal Research continues to hold a Buy rating for Netflix, targeting a price of $925. * Consistent in their evaluation, an analyst from Wedbush keeps a Outperform rating on Netflix with a target price of $800. * Maintaining their stance, an analyst from Canaccord Genuity continues to hold a Hold rating for Netflix, targeting a price of $760. * Showing optimism, an analyst from Piper Sandler upgrades its rating to Overweight with a revised price target of $800.

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.