Option Focus | Netflix’s $2.34 Million Long-Dated Put Purchase Meets $1.83 Million Put Sale as Institutions Lean Bullish Through Premium Collection

Option Witch
09/24

Netflix ended the session at $71.36, marking a -1.11% change, after opening at $72.075, reaching a high of $72.37, a low of $71.07, and recording about 32.78 million shares in volume.

Large options activity showed a tug-of-war between a $2.34 million long-dated put purchase and a $1.83 million shorter-dated put sale. While the biggest single trade leaned bearish, the overall institutional flow tilted slightly bullish as repeated out-of-the-money put selling dominated the displayed blocks.

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Options Indicators

Netflix has an implied volatility of 37.95%, and with an IV percentile of 49.80%, current volatility sits in a neutral range rather than at an extreme. Combined with an IV/HV ratio of 1.02, options appear to be priced close to realized volatility, suggesting premiums are broadly in line with recent actual movement rather than obviously cheap or expensive. The Call/Put volume ratio is 1.42.

Large Trades

A PUT purchase worth $2.34 million was the largest displayed trade, with 6,500 contracts bought at the 60.0 strike expiring on 2027-06-17. With NFLX referenced at 71.36, this put sits out of the money, making it a bearish downside hedge or speculative bet on a meaningful decline over a long-dated horizon. The buyer paid premium for convex downside exposure, which suggests interest in protecting against future weakness or positioning for a larger-than-expected drawdown rather than expressing a neutral income view.

A short PUT sale worth $1.83 million was the other key displayed block, with 3,850 contracts sold at the 70.0 strike expiring on 2027-01-15. Given the 71.36 reference price, this put was also out of the money, so the trade reflects a moderately bullish stance: the seller is collecting premium while expressing confidence that NFLX can remain above or near that strike into expiration. Overall, the bulk-order flow leans slightly bullish. While there was notable demand for downside protection through put buying, the broader large-trade pattern was characterized by repeated out-of-the-money put selling and premium collection, indicating that institutional participants were more inclined to monetize elevated downside fear than to chase an outright bearish view.

Strategy Reference

For a low assignment probability, a seller could look further down the put chain, such as the 65.0 or 60.0 strike, while a trader wanting to limit margin could instead use a bull put spread by selling the 70.0 put and buying the 65.0 put on the same expiration.

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