Most Active Weekly Options: Netflix, Inc. (NFLX)

Short-term Netflix, Inc. options are being targeted this morning

Digital Content Group
Oct 28, 2014 at 11:38 AM
facebook twitter linkedin


The 20 stocks listed in the table below are the S&P 500 Index (SPX) components that have attracted the highest weekly options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Netflix, Inc. (NASDAQ:NFLX), where options traders are gambling on the stock's end-of-week trajectory.

Most Active Weekly Options Table

Netflix, Inc. has popped 1.4% around midday to trade at $384.51, despite a lack of notable news. Meanwhile, in the options pits, calls and puts are changing hands at roughly equivalent rates, with weekly strikes garnering the lion's share of the attention.

Specifically, each of NFLX's 10 most active options expire at this Friday's closing bell. Taking the top position is the weekly 10/31 395-strike call, where roughly 1,100 contracts are on the tape. A healthy portion have crossed at the bid price, and volume outstrips open interest, suggesting the calls are being sold to open. In other words, the speculators anticipate NFLX will remain below $395 through week's end.

Looking at the charts, Netflix, Inc. (NASDAQ:NFLX) has recovered partially since an earnings-induced meltdown two weeks ago. However, while the shares have gained 16.2% since touching a post-earnings low of $331, they've recently encountered resistance in the $380-$385 area. As such, delta on the call is just 0.21, signifying a roughly 1-in-5 chance the option will be in the money at expiration.

 

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