Netflix, Inc. (NFLX) Traders Eye Short-Term Downside

Netflix, Inc. (NFLX) is about to go toe-to-toe with Apple Inc. (AAPL)

Digital Content Group
Mar 17, 2015 at 10:43 AM
facebook twitter linkedin


Netflix, Inc. (NASDAQ:NFLX) puts have been popular in recent weeks, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 10-day put/call volume ratio across these exchanges checks in at 1.15 -- just 8 percentage points from a 52-week peak.

NFLX puts are again in high demand this morning, crossing at a 53% mark-up to typical intraday levels. The equity's most active put is the March 420 strike, which appears to be seeing some buy-to-open activity -- as speculators wager on the shares to breach $420 by Friday's close, when front-month options expire.

This level is significant, as it roughly corresponds with NFLX's 200-day moving average -- a trendline the stock toppled during a post-earnings upside gap on Jan. 21. Additionally, while NFLX ended that session south of $420, it hasn't done so since.

This morning, the security is up fractionally at $422.48, refusing to buckle under broad-market headwinds or looming competition from Apple Inc. (NASDAQ:AAPL). Longer term, Netflix, Inc. (NASDAQ:NFLX) has advanced nearly 24% on a year-to-date basis.

Daily Chart of NFLX since January 2015 With 200-Day Moving Average

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners