Netflix Options Activity Points to Downside Risk as Puts Dominate — Here’s Where to Watch and What to Do

• Netflix (NFLX) opens lower at $91.37, down 0.42% as of early trading on March 20th, 2026.
• Options market sentiment favors the downside, with puts outpacing calls in open interest by a 0.86 ratio.
• Key resistance levels around $92.18 and support near $77.00 are in focus, per Bollinger Bands and moving averages.
• A large block trade of 1,500 shares in the call at $90 suggests bearish activity ahead of Friday’s expiration.

Here’s the thing — NFLX looks like it's struggling to find its footing today. The stock is trading below its 30-day moving average and the RSI is in oversold territory at 32.75, but that doesn’t mean it’s time to get bullish. The options market tells a different story, and one that’s worth paying attention to. Traders are piling into downside protection, and that could mean NFLX is vulnerable if it dips below key levels.

Bullish Buyers on the Sidelines, Bearish Puts in Control

Looking at the options chain for Friday’s expiration, the puts clearly dominate. The top OTM puts have over 30,000 open interest at strikes like $90 and $83, while the top OTM calls at $100 and $110 have just under 50,000. That means the market is more confident in a decline than a rally.

That’s not to say the calls are ignored — the $95 and $97 strikes also have notable open interest — but they’re not as dominant. This kind of imbalance usually signals traders are bracing for a pullback.

And there’s a block trade that stands out: 1,500 shares traded in the call at $90 with an expiration on Friday. That’s a bearish signal — someone is selling calls just above the current price, which can be a sign of a short-term top. If you’re long NFLX or considering an entry, this trade is a red flag.

No New News, But Market Sentiment Still Matters

There’s no new company news to drive sentiment in the past few days, which means the options data is speaking for itself. Without a headline to anchor the trade, the market is relying on technical signals. And right now, those signals lean bearish.

But here’s the kicker — NFLX is still sitting above its $76.95 lower Bollinger Band, and the 200-day moving average is nowhere near this price. That gives the stock a bit of a cushion if the market pulls back. But if it breaks below $90, the next support is at $84, and after that, things get ugly fast.

How to Play It: Clear Entry and Exit Levels for Traders

If you're looking to trade NFLX, here’s what you can do now:

• Options Traders: Buy the NFLX20260320P90 put expiring this Friday. With $90 as a top put strike and a block trade selling a call at the same level, this is a solid way to position for a potential drop before the weekend. If the stock closes below $90, this could be a quick win.

• Stock Traders: Consider entering a short position or tightening stop-losses if you’re long. A break below $90 would be a clear signal to act. Set your stop just above the $91.66 high of the day. If it breaks $88, re-evaluate your position.

• Conservative Play: Buy the NFLX20260327P90 put for next Friday. This gives you a buffer and time for the stock to test support without being forced to act this weekend.

Bullish Breakouts? Maybe Later — But Not Today

Let’s not get carried away. The RSI is in oversold territory, which can mean a bounce is coming. But in this case, the momentum indicators like MACD and RSI aren’t lining up for a rally. The MACD histogram is positive but shrinking, which means the trend is losing steam.

NFLX isn’t in a death spiral, but it’s not on the verge of a breakout either. The stock is in a bearish phase both short- and long-term, and that’s unlikely to change unless something big happens. Until then, the safest bet is to watch for a break below $90 and act accordingly.

The market is telling us to prepare for the downside — and that’s not something you want to ignore, especially when the tools are right in front of you. The puts are piling in, the block trades are bearish, and the technicals aren’t screaming bullish. This is your cue.