Netflix closed at $72.16, down 1.64%.

Large options trades showed a decisively bearish tilt, headlined by a $2.84 million short call at the $80.00 strike and a $243,000 out-of-the-money put purchase. The flow points to institutions capping upside and bracing for weakness rather than chasing further gains.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Netflix has an implied volatility of 37.45%, and with an IV percentile of 46.61%, its current volatility sits in a neutral range rather than at an extreme. Combined with an IV/HV ratio of 0.96, options appear fairly priced overall, with implied volatility tracking close to realized volatility instead of showing a meaningful premium or discount. The Call/Put volume ratio is 1.54.

Large Trades

A call sale worth $2.84 million was the standout large trade, with 3,000 contracts sold on the $80.00 call expiring September 17, 2027. With NFLX referenced at $72.16, this strike sits out of the money, making the position a bearish-to-cautious income trade that leans on the stock staying below the strike over time. Strategically, this kind of single-leg call write typically reflects capped-upside expectations, premium collection, or a willingness to fade a strong rally rather than position for further upside. A put buy worth $243,000 was the other displayed large trade, with 1,455 contracts bought on the $65.00 put expiring November 20, 2026. This strike is also out of the money versus the current stock reference, so the trade expresses a bearish view through downside exposure while allowing time for a larger decline to develop. As a single-leg long put, it points to either a directional downside bet or portfolio protection against weakening price action.

Overall, the large-trade flow is clearly bearish on NFLX. The displayed trades are both downside-leaning, led by a very large out-of-the-money call sale and reinforced by an out-of-the-money put purchase, while the broader bulk-order mix also shows additional bearish option structures and short-call activity outweighing the limited bullish flow. Taken together, the order flow suggests institutional traders are more focused on capping upside and positioning for weakness than on chasing further gains, leaving the near-to-medium-term sentiment skewed decisively negative.

Strategy Reference

For a low assignment probability sell-side trade, a trader could consider selling the $90.00 call in a nearer monthly expiration, or alternatively use a bear call spread such as selling the $80.00 call and buying the $90.00 call to cap margin risk while still expressing a cautious-to-bearish outlook.