NFLX Options Signal $1090 Support Battle: Short-Term Bear Play vs Long-Term Buy-the-Dip Setup

• Netflix (NFLX) trades at $1092.13, down 0.72% from $1100.09, with RSI at 31.19 and MACD -29.06
• Options data shows heavy Open Interest at $1150 calls and $1090 puts ahead of Friday’s expiry
• Earnings miss and Brazil tax dispute clash with stock split and Warner Bros. bid rumors

The market is torn between fear and hope for NFLX. Short-term technicals scream caution—RSI near oversold, bearish Kline patterns, and a MACD dive—but options positioning hints at a potential rebound. Here’s how to navigate the crossroads.The OI Crossroads: Where Bears and Bulls Collide

Options data tells a story of a tug-of-war. This Friday’s top OTM calls are clustered at $1150 (OI: 2,663), $1200 (2,216), and $1130 (1,875), while puts peak at $1090 (2,638) and $1050 (1,812). The put/call ratio for open interest is nearly 1.01, suggesting balanced sentiment—but the heavy concentration at $1090 and $1150 reveals a critical battleground.

Think of it like a chess match: bears are hedging downside risk with $1090 puts, while bulls are quietly accumulating calls at $1150. The $1090 put level aligns with the 30D support zone (1092.05–1095.09), making it a psychological floor. Meanwhile, $1150 sits just above the 30D moving average (1172.79), where a breakout could reignite long-term optimism.

News Noise: Tax Woes vs. Strategic Moves

Netflix’s Q3 earnings miss—driven by a $619M Brazil tax hit—explains the recent selloff. But the stock split and Warner Bros. acquisition rumors add a layer of complexity. The split (10-for-1) could attract retail buyers, boosting liquidity. The bid for Warner Bros. assets, if real, would expand Netflix’s content library—a bullish catalyst for growth.

Here’s the catch: the tax dispute is a short-term drag on margins, but the split and acquisition talk are long-term plays. This duality explains the options positioning—investors are hedging near-term risks while keeping the door open for a rebound. Retail traders might be buying the dip at $1090, while institutional players are eyeing $1150 as a key inflection point.

Actionable Plays: Short-Term Bear vs. Long-Term Bull

For options traders, the most compelling setup is a short-term bearish play with a long-term bullish hedge. Here’s how:

• Sell the $1150 Call (Friday expiry): With 2,663 contracts in open interest, this strike is a magnet for bullish bets. If NFLX fails to break above $1150 by Friday, the call could expire worthless, letting you pocket the premium. Entry: $1092.13 Target: $1060 (lower Bollinger Band at $1047.11)
• Buy the $1090 Put (Friday expiry): This strike lines up with the 30D support zone. If NFLX dips below $1090, the put could gain value. Entry: $1092.13 Target: $1060 (same as above)

For stock traders, consider a bullish call at $1090 if the support holds. A rebound above $1100 (intraday high) could trigger a test of the 200D MA at $1123.07. Entry: $1090 Target: $1150 (key call OI level) Stop Loss: $1060

Volatility on the Horizon: What to Watch

The next 48 hours will be critical. If NFLX breaks below $1090, the $1050 put OI (1,812) could drive further selloff. Conversely, a close above $1150 would validate the bullish case, especially if the Warner Bros. bid rumors gain traction. Keep an eye on Friday’s expiry—expiring contracts at $1150 and $1090 could create liquidity gaps or surges.

Final Takeaway

Netflix is at a crossroads. The short-term technicals and options data favor caution, but the long-term narrative—stock split, acquisition talk, and 17% revenue growth—hints at resilience. For now, treat $1090 as a critical support level. If it holds, the $1150 call OI could become a springboard for a rebound. If it breaks, the $1050 put OI might signal a deeper correction. Either way, the market is pricing in a volatile week ahead.