A Closer Look at Netflix's Options Market Dynamics

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 17 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 17%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $265,466, and 11 are calls, for a total amount of $810,731.

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 $400.0 to $725.0 for Netflix over the last 3 months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Netflix's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Netflix's substantial trades, within a strike price spectrum from $400.0 to $725.0 over the preceding 30 days.

Netflix Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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 almost 250 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

• Trading volume stands at 378,206, with NFLX's price up by 1.38%, positioned at $687.03.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 21 days.

Expert Opinions on Netflix

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $719.0.

• Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for Netflix, targeting a price of $707.
• Consistent in their evaluation, an analyst from Loop Capital keeps a Buy rating on Netflix with a target price of $750.
• Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $700.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Netflix with Benzinga Pro for real-time alerts.