Netflix, Inc. closed at $78.16, down 0.10%.

A massive $8.88 million double-long put combination dominated NFLX's options arena, signaling aggressive bearish conviction that overwhelmed smaller bullish spread trades. The institutional-sized dark pool prints starkly contrasted with the surface-level call/put volume ratio, revealing a deep divergence between retail activity and the directional bets of large traders.

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Options Indicators

NFLX’s implied volatility is 31.59%, and with an IV percentile of just 9.16%, current option pricing sits on the low end of its recent range, indicating volatility is relatively subdued and options appear cheaply priced rather than expensive. The IV/HV ratio of 1.08 suggests implied volatility is only slightly above realized volatility, so the market is not attaching a significant premium to near-term uncertainty. The Call/Put volume ratio is 2.24.

Large Trades

A directional double-long PUT combination with a net debit of $8.88 million was the standout large trade, consisting of long 110.0 puts and long 116.0 puts expiring on 2026-09-18. Both legs were in the money versus the $78.16 reference stock price, making this a high-conviction bearish structure rather than a premium-selling hedge. Because both puts were purchased outright in the same expiration, the trade signals an aggressive downside view and a willingness to pay substantial premium for leveraged protection or a sharp directional move lower.

A bullish put spread with a net debit of $0.23 million involved buying the 70.0 put expiring on 2026-12-18 and selling the 78.0 put expiring on 2026-08-21, with both strikes out of the money relative to the $78.16 reference price. Despite the unusual cross-expiration setup, it is still classified here as a bull put spread and reflects a moderately constructive stance, likely combining premium collection on the nearer-dated short put with downside coverage from the longer-dated lower-strike long put. Overall sentiment across all large trades was bearish: bullish flow totaled $8.04 million, bearish flow reached $10.20 million, and the net difference was $2.16 million to the bearish side. The conclusion is that large traders leaned negative on NFLX, with the dominant driver being the very large outright put-buying activity, while the smaller bullish spread trades appeared insufficient to offset that downside conviction.

Strategy Reference

Given the subdued IV percentile and bearish large-trader conviction, a contrarian short put seller could consider the 15-delta out-of-the-money strike for a low assignment probability, while traders unwilling to post significant margin might lean toward a bear put spread using the elevated put premiums to partially fund a defined-risk position.