Protection Purchased on Netflix (NFLX)

Shares of Netflix Inc. NFLX are higher on the session by 1.75%, currently trading $117.45. The stock has been performing amazingly well over the past six months and is now trading at fresh 52-week highs (which it has been doing day after day). Options traders are picking up puts on the name today, though the action does not appear bearish. The June $115 put was purchased over 6,000 times this morning; open interest on the strike is only 2,644 contracts, signaling new positioning on that line. Because the put buying is coinciding with a rally in the name (and that the put buying is so close to the current trade price of the stock), this appears to be a bullish position in the name where the trader buys stock and buys put hedges on that stock. This type of position effectively equals a long call. We are seeing this type of activity across many stocks this morning. Netflix, Inc. is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs (DVDs) by mail to more than 12 million subscribers. The Company's subscribers can watch unlimited movies and television episodes streamed to their televisions and computers, and can receive DVDs delivered to their homes.