Netflix Options Traders Take Aim at Key Level Ahead of Earnings

Calls remain very popular on NFLX

Oct 12, 2017 at 12:41 PM
facebook X logo linkedin


Netflix, Inc. (NASDAQ:NFLX) has been one of the hottest stocks on Wall Street in recent weeks, with the shares touching a record high of $199.40 on Monday. NFLX stock was more recently seen trading at $196.10, and with the streaming content company scheduled to report earnings after the close next Monday, more analysts -- and, seemingly, options traders -- are expecting additional upside from the equity.

For example, Stifel this morning boosted its price target to $230 from $200. The brokerage firm expects Netflix's spending on content to pay off in the way of strong third-quarter subscriber growth. The security has already added close to 60% year-to-date, and a move to these levels would bring this lead to almost 86%.

Options traders appear bullish, too. In today's trading, calls are outpacing puts 50,000 to 26,000. The weekly 10/13 series is extremely popular, as many traders bet on NFLX extending its climb higher by tomorrow's close, when the weekly series expires.

Outside this series, the standard October 200 call could be seeing buy-to-open activity. This would be nothing new, as this strike is fourth among the security's top open interest positions, and data from the major options exchanges confirms heavy buy-to-open action here. This means options traders expect NFLX to rally above the $200 threshold by expiration at next Friday's close.

Either way, Netflix stock has a history of making big moves after earnings reports. Going back eight quarters, the shares have averaged a single-day move of 9.2% after such events, including a 13.5% jump last quarter. This time around, the options market is currently pricing in a move of 10.3% for Tuesday's session.
 

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