Bullish Analysts, Option Traders Take Aim at NFLX Stock

The streaming stock has roughly doubled year-to-date

Managing Editor
Oct 4, 2018 at 9:43 AM
facebook twitter linkedin

Shares of Netflix, Inc. (NASDAQ:NFLX) are slightly lower in early trading, last seen down 0.5% at $375, despite earlier this morning receiving a price-target hike to $350 from $320 at Evercore ISI. The firm cited positive download data as the catalyst behind the bull note. This has been far from the only bullish analyst attention for Netflix stock, with 22 of the 33 covering firm sporting "buy" or better ratings. 

On the charts, NFLX has continued moving higher, and its recent pullback was contained by the 160-day moving average. Overall, the streaming name has nearly doubled year-to-date.

Looking at options, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows NFLX with a 10-day call/put volume ratio of 1.98, ranking in the 98th annual percentile. This indicates that roughly twice the amount of calls have been purchased for every put during the past two weeks of trading.

Lastly, the security's Schaeffer's put/call open interest ratio (SOIR) is 0.83, which ranks in the 8th percentile of its annual range. In other words, short-term traders have been unusually call-skewed toward the streaming stock, with call open interest outweighing put open interest among contracts expiring within three months.


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! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners