Netflix Stock Set to Slide Despite Bullish Barclays Note

Options sentiment has been bearish of late

by Emma Duncan

Published on Mar 28, 2018 at 9:14 AM
Updated on Mar 28, 2018 at 9:16 AM

Shares of Netflix, Inc. (NASDAQ:NFLX) are in focus after the stock received a price-target hike at Barclays to $335 from $285 early this morning. This vote of confidence comes after yesterday's tech-sector sell-off which sent NFLX shares to their lowest close since March 1. Still, the security is pointed 3.7% lower in pre-market trading, set to open at $297.49 -- just below Citron Research's price target.

Looking broader, the FAANG stock has had a great year, gaining 108% over the past 12 months, touching a record high of $333.98 on March 12. Still, 14 covering analysts rate the equity a "hold" or "strong sell," and the average 12-month price target sits down at $284.05.

In the options pits, sentiment has been more bearish than normal, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing NFLX with a 10-day put/call volume ratio of 0.80, ranking in the 72nd percentile of its annual range. This shows that during the past two weeks, puts have been purchased over calls at a faster-than-usual clip.

On the volatility front, the stock has a Schaeffer's Volatility Scorecard (SVS) of 88. This shows NFLX has tended to make outsized moves over the last 12 months, relative to what the options market has expected.

From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.
2 Stocks Sinking on Healthcare Sector Uncertainty
Both names are seeing heavier-than-usual options activity
Bear Note Pushes Cronos Group Stock Lower
BofA-Merrill Lynch just initiated coverage with an "underperform" rating
The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.