Option Volume Picks Up as Netflix, Inc. (NFLX) Slides

Netflix, Inc. (NFLX) calls and puts are both accelerated today

Digital Content Group
Mar 9, 2015 at 12:19 PM
facebook twitter linkedin


Since the start of the year, Netflix, Inc. (NASDAQ:NFLX) has added over 30%, thanks to an earnings-induced bull gap on Jan. 21. Today, though, the shares are lower, dropping 1.9% to hit $445.53. In NFLX's options pits, overall option volume is accelerated, as traders place bets on both sides of the aisle.

The most popular contract overall is the weekly 3/13 460-strike call, which it appears as if some traders are buying to open. These speculators are looking for NFLX to rebound from today's losses and eclipse $460 by the close on Friday, when the options expire. Other traders aren't as hopeful toward the shares, with buy-to-open activity detected at the in-the-money weekly 3/13 450-strike put, as traders look to profit on a move further below $450.

Call buying has dominated NFLX's options pits in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.07 is only 8 percentage points from an annual extreme.

Elsewhere, sentiment is more mixed. Currently, 14 covering analysts rate Netflix, Inc. (NASDAQ:NFLX) a "buy" or better, while another 14 call it a "hold" or worse. Meanwhile, its average 12-month price target comes in at $445.51 -- roughly in line with present trading levels.

 

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