Schaeffer's Top Stock Picks for '25

Netflix Stock Erases Early Sky Gains

The new Sky TV bundle will allow viewers access to popular Netflix titles with their subscription

Managing Editor
Mar 1, 2018 at 10:01 AM
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FAANG stocks have been making headlines this week, and today, all eyes are on streaming service Netflix, Inc. (NASDAQ:NFLX), which announced a partnership with U.K.-based pay-TV concern, Sky. As part of the deal, Sky -- which is the center of a fierce buyout battle between two media giants -- will add NFLX to its subscription bundle for Sky European users. 

On the charts, NFLX has had a great year, picking up 105% over the past 12 months, and most recently, touching a record high of $297.36 on Tuesday. However, broad-market headwinds appear to be weighing on Netflix stock today, with the shares last seen trading down 0.4% at $290.72 -- after being up almost 2% out of the gate.

Digging deeper, Netflix stock's Schaeffer's put/call open interest ratio (SOIR) of 0.77 ranks just two percentage points from its lowest annual percentile. This suggests that short-term speculators have rarely been more call-skewed toward the stock during the past 12 months than they are now.

Those purchasing the call options may be in luck, too. The equity's Schaeffer's Volatility Scorecard (SVS) reading of 85 (out of a possible 100) indicates that NFLX has consistently outperformed options traders' expectations over the past year --  which could be a potential boon to premium buyers.

 
 

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