$NFLX option bears score overnight

$NFLX option bears score overnight

by

Bearish option positions opened in Netflix (NFLX) yesterday are streaming higher today as shares fall.

On Oct. 12Market Rebellion’s Unusual Activity Service found that 3,200 Weekly $360 puts, expiring Oct. 13, were bought for $1.42 to $2.45 above the existing open interest of 2,686 contracts with shares at $367.97.

Those puts have traded for as much as $8.00 this session, a 226.53% return, while the stock fell 4.32% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

NFLX was last down on the session by 1.95% at $354.14.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Read More

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Read Next

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!
Start Your Day the Smart Money Way

Real-time Analysis

Interactive Chat Q&A
Professional Tactics