Netflix Options Traders Betting On Stock Moving Lower Amid Password-Sharing Crackdown

Netflix Inc NFLX shares dropped on Tuesday after the company provided an update on its password-sharing crackdown.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Netflix was one of the busiest single stock options on Tuesday.

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There were buyers of 15,589 of the May 26 weekly 355-puts at an average price of $3.21 per contract, Khouw mentioned.

The trader expects Netflix’s stock to move lower by the end of the week.

In an update posted on the company's blog, Netflix said it would email customers who are sharing Netflix outside their household in the United States. The email was shared in the post.

Price Action: Netflix shares fell 1.9% to close at $355.99 on Tuesday, and were down 0.3% in premarket trading on Wednesday.

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