Q2 STOCKS TO BUY

Bulls Active as Netflix, Inc. (NFLX) Bucks Headwinds

Broad-market headwinds aren't weighing on Netflix, Inc. (NFLX)

Digital Content Group
Jan 27, 2015 at 1:21 PM
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Netflix, Inc. (NASDAQ:NFLX) is shrugging off today's broad-market headwinds, up 1.4% to trade at $452.88. Meanwhile, options are crossing at 1.3 times the usual intraday clip, and the stock's 30-day at-the-money implied volatility has popped 3.7% to 33.6% -- suggesting elevated demand for short-term strikes.

Weekly options are in high demand, with the 1/30 series accounting for each of the 10 most active NFLX contracts. Drilling deeper, there appears to be buy-to-open activity at the weekly 1/30 450- and 455-strike calls, as speculators gamble on additional upside through week's end -- when the options expire.

Taking a step back, a call-buying trend has been evident in recent weeks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX has racked up a 10-day call/put volume ratio of 1.08 -- outstripping 72% of comparable readings from the last year.

Option bulls have been rewarded in recent sessions, too. Since last Tuesday's close, Netflix, Inc. (NASDAQ:NFLX) has jumped roughly 30% -- boosted by an earnings beat and subsequent round of positive analyst notes.

 

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