Decoding Netflix's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Netflix (NASDAQ:NFLX).

And retail traders should know.

We noticed this today when the positions 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.

Today, Benzinga's options scanner spotted 9 options trades for Netflix.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 22%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $25,000, and 8, calls, for a total amount of $345,518.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $610.0 to $655.0 for Netflix over the recent three months.

Volume & Open Interest Trends

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 $610.0 to $655.0 over the preceding 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 TRADE BULLISH 06/21/24 $26.65 $25.8 $26.65 $630.00 $127.9K 909 4
NFLX CALL TRADE NEUTRAL 06/21/24 $34.55 $33.2 $33.76 $620.00 $50.6K 1.2K 43
NFLX CALL SWEEP BULLISH 06/14/24 $32.75 $29.85 $31.32 $620.00 $31.2K 66 2
NFLX CALL SWEEP NEUTRAL 05/24/24 $5.85 $5.6 $5.72 $650.00 $29.9K 3.2K 1.2K
NFLX CALL SWEEP NEUTRAL 05/24/24 $31.55 $23.15 $27.24 $610.00 $27.5K 963 20

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.

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 Currently trading with a volume of 96,598, the NFLX's price is down by -0.33%, now at $638.72. RSI readings suggest the stock is currently is currently neutral between overbought and oversold. Anticipated earnings release is in 57 days. Expert Opinions on Netflix

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $656.8.

In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $725. An analyst from Jefferies downgraded its action to Buy with a price target of $655. An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $700. Reflecting concerns, an analyst from CICC lowers its rating to Outperform with a new price target of $650. An analyst from Rosenblatt has decided to maintain their Neutral rating on Netflix, which currently sits at a price target of $554.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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