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Most Active Options Update: Netflix, Inc. (NFLX)

One speculator closed out a calendar spread on Netflix, Inc.

by 7/25/2014 2:09 PM
Stocks quoted in this article:

The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest this afternoon is Netflix, Inc. (NASDAQ:NFLX), with one trader closing out a spread ahead of today's weekly expiration.

Most Active Options Table

Today's options activity on Netflix, Inc. is a little skewed, with call volume running at 89% of the usual level, and put volume arriving at 1.09 times the stock's intraday average. Meanwhile, 30-day at-the-money implied volatility on NFLX has tumbled to a new 52-week low of 29.1%.

One of the most active NFLX options is the weekly 7/25 425-strike put, where nearly 6,000 contracts have traded. Open interest at this strike stands at just 2,059 contracts, so it looks like last-minute speculators are adding new positions here ahead of tonight's expiration.

However, at least one trader appears to be closing out a position at this strike. Around midday, two matching blocks of 470 contracts each traded simultaneously at the weekly 7/25 425-strike put and the August 425 put. Data from the International Securities Exchange (ISE) confirms customer-level liquidations at both strikes, with the weekly puts bought to close and the August puts sold to close. This activity indicates the closeout of a calendar spread on NFLX.

On the charts, Netflix, Inc. (NASDAQ:NFLX) is down 0.7% this afternoon to trade at $422.33. The stock has gained 14.7% so far in 2014, but is currently on track for a weekly finish below its 10-week moving average for the first time in more than two months.


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