Netflix closed at $71.72, up 0.50%.

Options activity highlighted a pronounced downside bias, led by a $7.21 million four-leg put spread and supported by a $734 thousand short put position. The dominant trade established in-the-money puts across two expirations, signaling institutional hedging or bearish positioning rather than premium selling. Although the Call/Put volume ratio of 1.36 appears bullish on the surface, the capital-weighted large-trade flow leaned clearly toward puts, with the biggest premium deployment aimed at protecting against or profiting from further declines in Netflix shares.

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Options Indicators

Netflix’s implied volatility is 37.61%, and with an IV percentile of 47.41%, current volatility sits in a neutral range rather than at an extreme. The IV/HV ratio of 1.01 suggests implied volatility is closely aligned with recent realized volatility, indicating options are being priced fairly overall rather than showing a clear premium or discount.

The Call/Put volume ratio is 1.36.

Large Trades

A $7.21 million net-debit calendar-style put combination was the dominant large trade in NFLX, built as a four-leg put spread structure and clearly positioned on the bearish side. The trade bought 1,731 Dec. 18, 2026 $107.00 puts, sold 2,988 Sep. 25, 2026 $76.00 puts, bought 2,220 Sep. 25, 2026 $77.00 puts, and bought 1,431 Sep. 25, 2026 $78.00 puts, with the package carrying a net debit of $7.21 million. With NFLX referenced at $71.72, all of these strikes sit in-the-money, which points to a structure designed less for simple premium harvesting and more for downside positioning and hedging through a complex inter-expiry put spread. The use of multiple bought put legs against one shorter-dated sold put leg suggests the trader was willing to pay meaningful premium upfront to secure downside exposure and shape payoff across maturities, reflecting a defensive-to-bearish strategic intent rather than a neutral income trade.

A put sale worth $734 thousand was the second highlighted large trade, with 2,000 contracts of the Jan. 15, 2027 $68.00 put sold. With the stock at $71.72, this strike was out of the money at execution, making it a moderately bullish cash-secured-put style position or a willingness-to-own-the-stock-lower expression. Strategically, selling this put indicates the trader was comfortable collecting premium while betting NFLX would remain above $68.00 into expiration, or at least that any decline would stay limited enough for the option to decay favorably. Overall, however, the large-trade flow still leans clearly bearish: the biggest capital commitment of the session was a sizeable net-debit put combination aimed at downside exposure, and the broader block activity was dominated by bearish premium deployment rather than bullish conviction.

Strategy Reference

For a lower-assignment-probability put sale, a trader could consider selling the Jan. 15, 2027 $60.00 put, which is farther out of the money than the highlighted $68.00 strike, reducing the likelihood of being assigned while still collecting time decay.