Deep-pocketed investors have adopted a bearish approach towards Netflix NFLX, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NFLX usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 42 extraordinary options activities for Netflix. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 30% leaning bullish and 45% bearish. Among these notable options, 5 are puts, totaling $215,270, and 37 are calls, amounting to $2,211,188.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $480.0 to $910.0 for Netflix over the last 3 months.
Volume & Open Interest Trends
Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $480.0 to $910.0 in the last 30 days.
Netflix Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NFLX | CALL | SWEEP | BULLISH | 10/18/24 | $28.75 | $28.15 | $28.71 | $725.00 | $572.7K | 1.6K | 277 |
| NFLX | CALL | TRADE | BEARISH | 11/08/24 | $34.5 | $34.0 | $34.0 | $725.00 | $170.0K | 69 | 165 |
| NFLX | CALL | SWEEP | BEARISH | 01/15/27 | $110.9 | $106.45 | $108.84 | $910.00 | $119.7K | 9 | 59 |
| NFLX | CALL | TRADE | BEARISH | 10/18/24 | $246.8 | $242.35 | $244.0 | $480.00 | $73.2K | 14 | 3 |
| NFLX | CALL | TRADE | BEARISH | 10/18/24 | $24.45 | $24.0 | $24.0 | $735.00 | $72.0K | 901 | 101 |
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.
After a thorough review of the options trading surrounding Netflix, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Where Is Netflix Standing Right Now?
- Currently trading with a volume of 298,027, the NFLX's price is up by 0.41%, now at $725.77.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 3 days.
What The Experts Say On Netflix
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $715.0.
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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. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Netflix with a target price of $820. * An analyst from Barclays downgraded its action to Underweight with a price target of $550. * Consistent in their evaluation, an analyst from Guggenheim keeps a Buy rating on Netflix with a target price of $810. * An analyst from Rosenblatt persists with their Neutral rating on Netflix, maintaining a target price of $635. * An analyst from Keybanc persists with their Overweight rating on Netflix, maintaining a target price of $760.
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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