Netflix posted strong second-quarter results
Netflix Inc (NASDAQ:NFLX) stock is volatile this morning, after the streaming giant's upbeat second-quarter results and subscriber growth came alongside a disappointing fiscal third-quarter forecast. A flood of analysts raised their price targets on NFLX, including BMO to $770 from $713. At last check, the stock was flat at $643.39, after earlier jumping as high as $678.97.
Before its earlier surge, Netflix stock had been sliding since its early July, two-year peak near the $700 region, which is also home to its November 17, 2021 record high of $700.98, and a firm level of pressure to watch going forward. So far this year, the equity rose 31.4%.
A point in favor of bulls, NFLX's 14-day relative strength index of 26.4 sits in "oversold" territory, which typically indicates a short-term bounce.
Over in the options pits, 113,000 calls and 87,000 puts have been exchanged, which is six times the overall options volume typically seen at this point. Expiring later today, the July 700 call and 625 put are the most popular contracts, with new positions opening at both.