Netflix Stock Moves Lower Despite Price-Target Hike

The equity currently sports attractively priced premiums

Digital Content Manager
Dec 4, 2020 at 9:37 AM
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The shares of Netflix Inc (NASDAQ:NFLX) are down 0.3% at $498.55 at last check, despite the streaming giant receiving a price-target hike from Benchmark to $412 from $392 this morning. This bull note is roughly 17% lower than the equity's current perch, and is modest when compared to the 12-month consensus target price of $548.37, which is a 10.2% premium to last night's close.

On the charts, the stock has been cooling off from an Aug. 13, all-time-high of $575.37. Shares have attempted to surge back to those levels twice in the last few months, once in early September and later in October, but ultimately fell short. Over the past couple of weeks, the equity has been struggling with overhead pressure at the round $510 mark. Year-over-year, NFLX remains up 63.5%.

Analysts were already optimistic toward the stock coming into today, with 20 of the 30 in question sporting a "buy" or better rating, and the remaining 10 carrying a tepid "hold" or worse.

That optimism is echoed in the options pits, where calls are popular. This is per the security's 10-day call/put volume ratio of 1.99 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 76% of readings from the past year. In simpler terms, calls are being picked up at a quicker-than-usual clip.  

Now may be the perfect opportunity to take advantage of Netflix stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 35% sits in the extremely low 12th percentile of its annual range. This means the stock is currently sporting attractively priced premiums. 

 

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