FAANG Stock Retreats from Record Highs Amid Win Stretch

The brokerage bunch, meanwhile, is unusually bullish towards NFLX

Assistant Editor
Sep 3, 2021 at 10:38 AM
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The shares of streaming giant Netflix Inc (NASDAQ:NFLX) are down 0.4% at $586.09 at last check, a day after the equity nabbed an all-time high of $598.76. The FAANG name has recently strung together its best ever two-week stretch, nabbing 14 wins in 15 sessions. However, there's no clear catalyst for this impressive run, so now seems like a worthy time to take a closer look at Netflix stock.

Over the last month, NFLX added 13.9%, helping the equity overcome both its year-over-year and year-to-date breakeven levels. In late July, the security pulled back multiple times, but was saved by the $505 level, with long term support from the 320-day moving average buoying the shares as well. Meanwhile, Netflix stock has found a new ceiling at the $590 area.

Options traders haven't been more bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX sports a 10-day call/put volume ratio of 4.17, which stands higher than all other readings from the past year. This means long calls are being picked up at a quicker-than-usual clip.

A penchant for bearish bets is prevalent in today's options pits however, with 28,000 puts crossing the tape already -- volume that's double what's typically seen at this point. Calls still outpace puts on an overall basis, though, with 38,000 calls exchanging hands so far today. Most popular is the weekly 9/3 580-strike put, where new positions are being sold to open, suggesting these traders might be eyeing the $580 level as a potential floor for today's trading. The weekly 9/3 600-strike call is also popular. 

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