Netflix closed at 76.02 USD, down 2.74%.
Despite the daily decline, options flow leaned decisively bullish, with total bullish large-trade activity reaching $8.55 million versus just $0.45 million bearish. The session was defined by structured bullish spreads rather than outright directional calls, as traders deployed a bull put spread and a bull call spread to express constructive views while maintaining defined risk. The net bullish difference of $8.10 million signals that institutional participants treated the pullback as an opportunity to accumulate upside exposure and collect premium, rather than as the start of a deeper slide.
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Options Indicators
NFLX’s implied volatility is 33.63%, and with an IV percentile of 22.31%, current option volatility sits in the lower end of its recent range, indicating options are relatively cheaply priced rather than expensive. The IV/HV ratio of 1.22 shows implied volatility is running modestly above historical volatility, suggesting the market is assigning a moderate premium to forward uncertainty, but overall pricing still leans toward the inexpensive side given the low percentile backdrop. The Call/Put volume ratio is 1.94, reflecting a clear preference for call-side activity and reinforcing the bullish tone of the day’s flow.
Large Trades
A bullish bull put spread with a net credit of $0.01 million stood out as the largest displayed trade, using the September 18, 2026 expiration to express a constructive view while collecting premium. The structure involved selling the 116.0 put and buying the 110.0 put, both of which were in the money versus the $76.02 reference stock price, making this a defined-risk premium-collection strategy that benefits if NFLX remains firm enough for downside risk to stay contained relative to the spread. The net credit indicates the trader was paid upfront to assume limited downside exposure, which is typically consistent with a moderately bullish stance rather than an aggressive upside chase.
A bullish bull call spread with a net debit of $0.03 million added another positive signal, built through the purchase of the August 21, 2026 81.0 call and sale of the August 21, 2026 83.0 call. Both calls were out of the money against the $76.02 reference price, so this was a defined-risk directional bet on upside over the coming year, with the trader paying a relatively small premium for participation in a move higher while capping gains above 83.0. Strategically, this is a classic low-cost bullish positioning trade, showing willingness to spend premium for upside exposure rather than simply harvesting option decay.
Overall sentiment was clearly bullish: total bullish large-trade flow reached $8.55 million versus $0.45 million bearish, for a net difference of $8.10 million to the bullish side. The directional judgment is decisively positive, as the dominant activity came from structured bullish spreads rather than speculative one-off shorts, suggesting traders favored defined-risk upside and premium-collection setups while bearish flow remained comparatively minor and concentrated in call selling.
Strategy Reference
For traders seeking a low assignment probability with limited margin, selling an out-of-the-money put around the 60.00 strike offers a defined-risk premium collection setup; alternatively, a bull put spread such as the 70.00/65.00 spread on the same expiration provides a capital-efficient way to express the bullish lean while capping downside exposure.