Netflix Stock Sinks on Analyst Downgrade to "Sell"

The shares are today testing a floor at the $220 level

Digital Content Manager
Aug 22, 2022 at 10:34 AM
facebook twitter linkedin


Streaming giant Netflix Inc (NASDAQ NFLX) is sinking this morning, last seen down 5.7% at $227.34, after CFRA downgraded the equity to “sell” from “hold." The firm expects Netflix to underperform the S&P 500 (SPX) for the remainder of the year, after adding roughly 40% from its mid-July lows.

Digging deeper, the security's latest rally fell short of the $260 level and 120-day moving average, the latter of which has acted as pressure for most of the year. The shares have struggled on the charts, down 62% so far in 2022, though a floor at the $220 level looks poised to contain today's bear gap.

Calls still outpace puts on an overall basis, but investors have been picking up long puts at a faster-than-usual pace over the last 10 weeks. This is per NFLX's 50-day put/call volume ratio of 0.82 back at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 90% of readings from the past year. 

These traders are in luck, as now seems like the perfect opportunity to bet on the Netflix stock's next moves with options. This is per the equity's Schaeffer's Volatility Scorecard (SVS) ranking of 98 out of 100, which suggests NFLX has usually outperformed volatility expectations.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners