Netflix Stock Keeps Rallying After 2 More Major Bull Notes

Options traders have been call-heavy of late

Managing Editor
Jun 21, 2018 at 10:04 AM
facebook twitter linkedin


Streaming concern Netflix, Inc. (NASDAQ:NFLX) is higher in early trading after receiving its second $500 price target this week. Pivotal Research Group raised its price target to $500 from $420 -- matching GBH Insights' target from earlier this week -- citing expectations for a strong second quarter, while adding that the recent AT&T-Time Warner deal could hinder HBO's ability to compete in the streaming business. In response, the FAANG stock is slightly higher at $417.57, earlier hitting a record high of $423.21.

The positive analyst notes don't end there, however, as Raymond James hiked its price target on the streaming name by a whopping $100 to $465. As of yesterday, 19 of the 33 analysts following the stock sported "buy" or better ratings. Netflix stock has been a long-term outperformer on the charts, and despite Citron Research's negative outlook, the tech concern has gained almost 170% year-over-year.

Options traders have been bullish, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing the security with a 10-day call/put volume ratio of 1.54, ranking in the 79th percentile of its annual range. This means that calls have been purchased over puts at a faster-than-usual clip during the past two weeks.

Lastly, the stock has consistently rewarded premium buyers, per NFLX's lofty Schaeffer's Volatility Scorecard (SVS) ranking of 84 (out of a possible 100). In other words, the stock has made bigger moves on the charts in the past year, relative to what the options market had priced in.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners