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Netflix, Inc. (NFLX) Calls Popular Ahead of Stock Split Talks

Netflix, Inc. (NASDAQ:NFLX) will hold its annual shareholder meeting this afternoon

Jun 9, 2015 at 1:41 PM
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Netflix, Inc. (NASDAQ:NFLX) calls have been in high demand 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 1.11 outranks 94% of comparable readings from the past year, suggesting traders have bought to open calls over puts at an accelerated clip over the last 10 weeks.

That trend is holding up today, amid NFLX's new all-time high of $648.16. At last check, calls were crossing at 1.9 times the usual intraday rate. Short-term speculators are especially busy, as nine of the 10 most active options are transpiring in the weekly 6/12 series. Specifically, bulls are buying to open the weekly 6/12 635- and 640-strike calls, in the hopes of additional upside -- and higher highs -- by this Friday's close, when the series expires.

Short-term NFLX options can be had at a relative discount right now. The stock's Schaeffer's Volatility Index (SVI) of 24% is lower than 95% of comparable readings from the previous 12 months. What's more, the security's Schaeffer's Volatility Scorecard (SVS) of 100 indicates NFLX has tended to make outsized moves in the past year, relative to what the options market has priced in.

As alluded to, Netflix, Inc. (NASDAQ:NFLX) is tearing up the charts today, last seen 2.8% higher at $644.89. This comes ahead of this evening's annual shareholder meeting, where a potential stock split is expected to be discussed.
 
 

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