NFLX – Netflix, Inc. – Shares of the provider of subscription services for streaming movies and TV episodes over the Internet jumped 6.4% this afternoon to reach an all-time high of $156.67 on news the company expanded outside of the U.S. for the first time by offering Canadians its streaming services for $7.99 a month. Investors expecting shares to appreciate during the remainder of this trading week looked to the stock’s weekly option contracts to initiate bullish plays. Earlier in the session, traders scooped up some 1,300 now deep in-the-money calls at the September $150 strike for an average premium of $3.81 each. These same options now tote an asking price of $6.65 per contract. Bulls also picked up another 1,900 now in-the-money calls at the September $155 strike for an average premium of $1.78 apiece. Investors holding these contracts stand ready to amass profits should NFLX’s shares exceed the average breakeven price of $156.78 by expiration on Friday. October contract options were also heavily populated during the first half of the trading session. More than 62,190 option contracts changed hands as of 12:50 pm ET. Investors populating Netflix options exchanged more than 1.3 calls on the stock for each single put option in play thus far in the trading day. The overall reading of options implied volatility on NFLX is higher by 6.1% to arrive at 53.86% ten minutes before 1:00 pm ET.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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