For NFLX to be down on such a buoyant day for the overall equity market is certainly no good omen. NFLX, however, has completely and totally destroyed short sellers throughout it's meteoric rise that arguably began in February of 2010 when the stock was around $60, so I would hesitate to suggest getting short. Longs, however, should check their risk at the door if they have not already.
A look inside the option market shows that today investors traded more puts (97,043) than calls (74,713) and traders took in a net credit of about $1.1mm in premium on those calls while spending about $2.5mm of premium on puts. Certainly not bullish looking action, but I would not draw too many conclusions based on these details. Consider that there are likely many traders that have been long and could be employing a variety of strategies to hedge their gains at this time.
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| Courtesy: LivevolPro |
