Netflix, Inc. (NFLX) Gaps Higher on Viewership Data, Bullish Note

Netflix, Inc. (NASDAQ:NFLX) has gapped higher and call options are hot yet again

by Josh Selway

Published on Jul 1, 2016 at 10:25 AM

Netflix, Inc. (NASDAQ:NFLX) has gapped higher out of the gate, last seen 4.9% higher at $96, after investors were finally given a glance at the company's viewership data. Specifically, measurement specialist Nielsen released viewing numbers for a number for Netflix shows, including "Orange is the New Black," which drew an impressive 6.7 million viewers with its season 4 premiere. On top of that, NFLX is also getting a boost from bullish analyst attention. 

Canaccord Genuity this morning initiated coverage on NFLX stock with a "buy" rating and $120 price target, saying it expects strong subscriber growth over time. Most analysts are already in NFLX's bullish corner. Sixteen recommend buying the stock, versus eight "hold" ratings, and two "strong sells." Meanwhile, the shares' have a consensus 12-month price target of $117.23. 

Elsewhere, today's price action has brought even more call traders to the table. By the numbers, more than 45,000 calls have traded already today, five times the intraday norm, and two times the amount of puts traded so far. The weekly 7/1 series is very popular, as traders place last-minute bets before the contracts expire at today's close. 

In the meantime, short interest continues to decline on NFLX. The amount of shorted NFLX shares has dropped during the last two reporting periods, and short interest has now fallen a total of over 24% in 2016. However, the stock's short-interest ratio still stands at a healthy 4.00. 

Technically speaking, Netflix, Inc. (NASDAQ:NFLX) remains 16% lower in 2016, not to mention a far shot from its record highs above $133 back in December. On the other hand, NFLX stock is on pace to close above its 60-day moving average for the first time since June 7. 

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