Wasu Talks Excite Netflix, Inc. (NFLX) Bulls

Netflix, Inc. (NFLX) appears to be one step closer to entering the Chinese online media market

May 18, 2015 at 1:48 PM
facebook X logo linkedin


Netflix, Inc. (NASDAQ:NFLX) jumped to a record high of $619.25 earlier, and was last seen up 0.3% at $615.14. Propelling the shares are reports the streaming content provider has had discussions with Wasu Media Holding Co. about entering the Chinese market -- confirming earlier speculation. Meanwhile, weekly NFLX options are extremely popular, as each of the stock's 10 most active strikes will expire at this Friday's close.

Digging deeper, the weekly 5/22 630-strike call is among several NFLX options seeing buy-to-open action. By initiating these out-of-the-money positions, speculators think the shares will extend their gains and settle atop $630 by week's end -- when the series expires -- notching new record highs along the way. Delta on the option is just 0.22, though, suggesting a roughly 1-in-5 chance the contract will be in the money at expiration.

Taking a step back, NFLX calls have been in high demand recently. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has racked up a call/put volume ratio of 1.16 -- higher than all but 15% of comparable readings taken in the past year.

Analysts are similarly bullish. Nineteen of 29 brokerage firms tracking Netflix, Inc. (NASDAQ:NFLX) have designated it a "buy" or better, compared to nine "holds" and just one "strong sell." However, the stock's average 12-month price target of $574.05 stands at a discount to current trading levels, so a round of upward price-target revisions may be in order.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI