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