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Looking At Netflix's Smart Money Trades

Someone with a lot of money to spend (and possibly insider knowledge) has taken an unusually bearish stance on Netflix.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don’t know. But when something this big happens with NFLX, it often means somebody knows something is about to happen.

So how do we know what the Smart Money just did?

Today, Benzinga’s options scanner spotted 12 uncommon options trades for Netflix (NASDAQ:NFLX).

This isn’t normal.

The overall sentiment of these big-money traders is split between 41.67% bullish and 58.33%, bearish.

Out of all of the special options we uncovered, there was 1 put, for a total amount of $126,095, and there was 1 call, for a total amount of $553,776.

What’s The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that the smart money is targeting a price range from $515.0 to $680.0 for Netflix in the over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Netflix’s options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Netflix’s smart money trades within a strike price range from $515.0 to $680.0 in the last 30 days.

Netflix Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
NFLX CALL SWEEP BEARISH 09/17/21 $590.00 $42.5K 7.1K 7.3K
NFLX CALL SWEEP BULLISH 09/17/21 $590.00 $26.8K 7.1K 6.5K
NFLX CALL SWEEP BULLISH 09/17/21 $590.00 $26.6K 7.1K 6.2K
NFLX CALL SWEEP BULLISH 09/17/21 $590.00 $28.5K 7.1K 5.8K
NFLX CALL SWEEP BEARISH 09/17/21 $590.00 $30.1K 7.1K 5.3K

Where Is Netflix Standing Right Now?

  • With a volume of 1,047,121, the price of NFLX is up -0.04% over the last 24 hours at $577.53.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 34 days.

Price and RSI Chart

What The Experts Say On Netflix:

  • Arete Research downgraded its action to Buy saying the stock has the potential to tumble 27.27% to a target of $735.0
  • JP Morgan has decided to maintain their Overweight rating on Netflix, which currently sits at a price target of $705.0.
  • Atlantic Equities has decided to maintain their Overweight rating on Netflix, which currently sits at a price target of $780.0.
  • Goldman Sachs downgraded its action to Neutral saying the stock has the potential to tumble 2.16% to a target of $590.0

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely. If you are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.

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