NFLX Options Signal $120 Call Wall and $95 Put Support: Bullish Breakout Setup Amid Bidding War Drama

• NFLX surges 1.2% to $95.70 as options market builds a $120 call wall and $95 put cushion
• RSI at 31.3 suggests oversold conditions, but Bollinger Bands show bearish pressure
• Warner Bros. board backs Netflix’s $72B bid, creating content megamerger buzz

Here’s the thing: NFLX is dancing on a tightrope. The stock’s 1.2% rally today clashes with a long-term bearish Kline pattern, but options traders are hedging for both directions. The key takeaway? A $120 call wall and $95 put support suggest a bullish breakout could be brewing—if the stock holds above $92.71.

"The Options Playbook: Calls at $120, Puts at $95"

The options chain tells a story of cautious optimism. For Friday’s expiry (Dec 19), NFLX20251219C120 leads with 52,399 open contracts, forming a massive call wall just 25% above current price. Meanwhile, NFLX20251219P95 has 28,171 open puts, creating a soft landing zone. The 1.02 put/call ratio (open interest) shows balanced sentiment, but the RSI hovering near oversold territory hints at potential reflation.

What’s the risk? If NFLX dips below $95.20 (today’s low), the $92.71 support level becomes critical. A break there could trigger a test of the 89.55 Bollinger Band lower bound. But if buyers step in above $95.20, the $120 call wall could ignite a short squeeze.

"Bidding War Drama: Content Megamerger or Debt Trap?"

Warner Bros. Discovery’s board rejecting Paramount’s $77.9B offer in favor of Netflix’s $72B bid is fueling speculation. The deal could supercharge Netflix’s content pipeline with Harry Potter and HBO franchises, but analysts are split. Some worry about Netflix’s $82.7B debt load and potential subscription price hikes. Others see a path to 9.2% U.S. TV viewership, still trailing Disney and YouTube.

The market’s mixed reaction is baked into options positioning. Heavy call buying at $120 suggests traders are pricing in optimism about content synergies, while the $95 put cushion reflects caution about regulatory hurdles or integration risks. The next 12–18 months will test whether this merger is a "best deal" or a "terrible mistake."

"Trade Ideas: Calls for Breakouts, Puts for Protection"

For options traders:

• Bullish play: Buy NFLX20251219C120 if NFLX breaks above today’s high of $97.33. Target $102.44 (Bollinger middle band) as a first profit zone.
• Bearish hedge: Buy NFLX20251219P95 to protect against a drop below $95.20. Exit if the stock holds above $97.33.

For stock traders:

• Entry near $95.20 if support holds. Target $97.33 (intraday high) as a near-term goal, then $102.44 for a longer-term move.
• Stop-loss below $92.71 to avoid a test of the 89.55 Bollinger Band.

"Volatility on the Horizon: What’s Next for NFLX?"

The coming weeks will be a tug-of-war between merger euphoria and technical headwinds. With the 200D MA at $1,035.84 lightyears away, NFLX needs to prove it can sustain momentum above $97.33 to shift the long-term trend. The $120 call wall is a psychological hurdle—clear it, and the 114.0058 resistance zone could become a new battleground. But don’t ignore the $95 put cushion: it’s a lifeline if the bidding war drama turns sour.

Bottom line: This is a high-risk, high-reward setup. The options data and news flow align on a pivotal $95.20–$97.33 range. Trade with a plan, and keep an eye on regulatory updates. The next chapter for Netflix—and Hollywood—could be written in the next 12–18 months.