Unpacking the Latest Options Trading Trends in Netflix

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 18 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 27% bullish and 33%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $118,947, and 15 are calls, for a total amount of $951,899.

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 $800.0 to $900.0 for Netflix over the last 3 months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Netflix stands at 1014.38, with a total volume reaching 9,647.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Netflix, situated within the strike price corridor from $800.0 to $900.0, throughout the last 30 days.

Netflix 30-Day Option Volume & Interest Snapshot

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.

In light of the recent options history for Netflix, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Netflix's Current Market Status

• With a trading volume of 153,058, the price of NFLX is up by 0.88%, reaching $878.95.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 62 days from now.

What Analysts Are Saying About Netflix

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $958.3333333333334.

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 Pivotal Research has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $1100. * An analyst from Guggenheim has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $825. * In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $950.

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.