Huge Volume in Netflix Call Options Today Shows Investors are Bullish on NFLX Stock

<p>Netflix, Inc. (NFLX) stock is up 5% today, leading to huge call options volume in two out-of-the-money (OTM) tranches. NFLX call buyers and covered call sellers are bullish, based on the Warner Bros Discovery (WBD) acquisition saga and Netflix's earnings.</p>
<p>NFLX is at $82.45 in midday trading, up $4.21 (+5.39%). NFLX closed at a recent low on February 23 at $76.02, so it's now up over 8.4% in the last two days.</p>
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<p>That could be why call options buyers and covered call sellers are now bullish on NFLX stock today. This can be seen in the Barchart Unusual Stock Options Activity Report.</p>
<p>It shows that over 3,400 call option contracts have traded at the $93.00 strike price for the period ending March 13, 2026. The second tranche of over 58,000 call option contracts traded at the $105.00 strike price for expiry on May 15.</p>
<h2>Unusual NFLX Call Options Trading</h2>
<p>These are highly unusual volumes. For example, only 175 prior $93.00 call contracts were open for 3/13/26 before today's unusual volume. That means today's volume is almost 20x the prior number outstanding.</p>
<p>And there were only 4,100 $105 calls outstanding for expiry on 5/15/26, leading to a Vol/open interest (OI) ratio of over 14x.</p>
<p>Note that both of these call option tranches are for out-of-the-money (OTM) strike prices - i.e., higher than the current trading price. The March tranche is 13% OTM, and the May tranche is over 28% higher.</p>
<p>That implies the buyers of these calls are betting that NFLX will rise over the next 16 days and 79 days, respectively.</p>
<p>Moreover, sellers of these calls, especially covered call sellers, may believe NFLX will rise, either to the strike price or not. Even if NFLX hits $93.00 for example, with the March 13 tranche, they would make a total return of over 13%:</p>
<p>($93+$0.41 premium)/$82.45 -1 = $93.41/$82.45 -1 = 1.133 -1= +13.3% upside</p>
<p>The May tranche covered call sellers could make a potential return of 28.5%:</p>
<p>($105 +$0.92)/$82.45 = $105.92/$82.45 -1 = 1.2847 -1 = +28.% upside</p>
<p>Why are investors so bullish? It likely relates to the Warner Bros. Discovery (WBD) takeover saga nearing an end, as well as Netflix's underlying strong free cash flow (FCF).</p>