Netflix ended the session at $71.57, rising 2.68%.

The large-trade flow, however, was decidedly bearish. A $972,500 long-dated put buy dominated the session, while an out-of-the-money call sale added a second layer of downside conviction. Despite the stock’s gain, institutional positioning leaned heavily toward protection and limited upside, suggesting a cautious outlook beneath the surface momentum.

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Options Indicators

Netflix’s implied volatility stands at 43.33%, and with an IV percentile of 66.93%, current volatility conditions sit in a broadly neutral zone rather than at an extreme. At the same time, the IV/HV ratio of 1.29 shows implied volatility is running above historical volatility, suggesting options are carrying a modest premium but are not yet in clearly expensive territory. The Call/Put volume ratio is 2.96.

Large Trades

A put buy worth $972,500 was the standout large trade, with 2,500 contracts of the March 19, 2027 $65.00 put purchased while Netflix was referenced at $71.57. This was an out-of-the-money bearish position, giving the buyer downside exposure below the strike over a long-dated horizon. The structure points to a trader paying premium for protection or for a directional bet that Netflix could weaken materially over time, and the long expiry suggests conviction in a sustained bearish thesis rather than a short-term hedge alone.

A call sale worth $25,700 was also notable, with 1,167 contracts of the October 16, 2026 $75.00 call sold. With the stock at $71.57, this call was out of the money, making it a bearish to neutral income-oriented position that benefits if Netflix remains below the strike through expiration. The trade implies the seller was comfortable capping upside in exchange for premium collection, reinforcing a view that the shares are unlikely to stage a strong rally into that level.

Overall, the large-trade flow in Netflix was clearly bearish. The order flow was dominated by put buying, led by the sizable long-dated $65.00 put purchase, while the additional call selling further supported a cautious to negative outlook. Taken together, the bulk activity suggests institutions were more focused on downside exposure and defensive positioning than on upside participation, indicating a market stance that expects weakness or at least limited upside in Netflix.

Strategy Reference

For traders seeking low assignment probability on the call side, selling the October 16, 2026 $75.00 call or a higher strike with a lower delta could align with the bearish flow, while a bear put spread using the March 19, 2027 $65.00/$55.00 puts may offer defined risk for those wary of posting large margin on a standalone long put.