Put options have become increasingly popular on Netflix, Inc. (NASDAQ:NFLX) during the past several weeks,
Put options have become increasingly popular on Netflix, Inc. (NASDAQ:NFLX) during the past several weeks, according to volume data from the major exchanges. Report a 10-day put/call volume ratio of 1.04 for NFLX, as bearish bets bought to open have outnumbered their bullish counterparts in recent sessions. This ratio ranks higher than 80% of other such readings taken over the past 52 weeks, confirming a healthier-than-usual appetite for puts over calls on the stock.
The company's first-quarter results triggered a massive bullish gap for the shares, which gained more than 24% the day following the release. Since then, NFLX has cooled its heels on the charts, with the stock consolidating some recent gains between the $220 and $205 levels.
Nevertheless, puts have gained a steady following. In addition to the rising buy-to-open volume, puts also remain the options of choice among near-term speculators.
This negative sentiment isn't limited to the options pits, either. Short interest on NFLX rose by 9.3% during the most recent reporting period, and now accounts for a noteworthy 16.6% of the stock's float.
As the shares solidify their newfound footing north of the $200 mark, this lingering pessimism could actually be a positive catalyst for NFLX. In light of the company's strong fundamentals and improving technical outlook, a capitulation by bearish traders could translate into new buying power for NFLX during the near term.
At last check, the stock is up 2.6% at $214.12, pushing its year-to-date gain near 131%.