What's more, the stock's short-term options are a steal
The shares of Netflix, Inc. (NASDAQ:NFLX) -- a company now worth more than blue chip Walt Disney (DIS) -- notched an all-time high of $358.63 earlier today, and were last seen 1.7% higher at $357.62. What's more, the FAANG stock could extend its run higher over the next few months, if recent history is any indicator.
Last week, Netflix stock powered through congestion in the $330-$340 area, after the streaming media giant announced a production deal with former President and First Lady Barack and Michelle Obama. Since then, NFLX has consolidated its gains atop the $350 level, and today's breakout has the security sitting on a year-to-date gain of more than 86%.
Plus, while the rest of the stock market tends to be sluggish in the month of June, NFLX has been one of the best S&P 500 members to own in the summer months. Specifically, the FAANG stock has averaged a June-August gain of 7.71%, looking back 10 years, according to data from Schaeffer's Senior Quantitative Analyst Rocky White. Further, Netflix shares have ended this stretch higher 70% of the time. A similar 7.71% rally from current levels would put NFLX around $385.20 by the end of August.
Despite the equity's unrelenting quest for all-time highs, several analysts remain unconvinced. Netflix stock sports just 21 "buy" or better endorsements, compared to 13 "hold" or worse ratings. This leaves the door wide open for analyst upgrades to lure more buyers to the table. Likewise, the average 12-month price target of $334.95 represents a discount to NFLX's current price, setting the scene for possible price-target hikes.
Speculators looking to play the FAANG stock's short-term trajectory can pick up options at a relative discount, too. The security's Schaeffer's Volatility Index (SVI) of 27% is higher than just 7% of all other readings from the past year, suggesting near-term options are pricing in relatively low volatility expectations right now. Further, the stock's Schaeffer's Volatility Scorecard (SVS) sits at 94 out of 100, meaning NFLX has handily exceeded options traders' volatility expectations during the past year.