What the Options Market Tells Us About 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 28 uncommon options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 28% bullish and 50%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $470,379, and 19 are calls, for a total amount of $1,069,300.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $950.0 for Netflix, spanning the last three months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Netflix options trades today is 445.74 with a total volume of 5,414.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Netflix's big money trades within a strike price range of $250.0 to $950.0 over the last 30 days.

Netflix Option Activity Analysis: Last 30 Days

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.

Present Market Standing of Netflix

• With a trading volume of 411,189, the price of NFLX is down by -0.7%, reaching $866.45.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 55 days from now.

Expert Opinions on Netflix

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $968.75.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Netflix with a target price of $1100. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Netflix with a target price of $1000. * An analyst from Guggenheim has decided to maintain their Buy rating on Netflix, which currently sits at a price target of $825. * Reflecting concerns, an analyst from Wedbush lowers its rating to Outperform with a new price target of $950.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Netflix options trades with real-time alerts from Benzinga Pro.