NFLX Options Signal $92.5 Call Battle: Bearish Pressure vs. Earnings Catalyst – How to Play the $59B WBD Overhang

• NFLX trades at $88.74, 0.2% up, with RSI at 24.77 (oversold)
• Options OI shows heavy call interest at $92.5 and $100 strikes, but puts dominate at $10
• Block trades of 1,800 contracts at $92 and $96 calls hint at institutional positioning

Here’s the thing: NFLX is stuck in a bearish trap but showing early signs of a rebound. The options market is split—calls are building a wall at $92.5, while puts scream for a breakdown below $88.55. Let’s break it down.

The $92.5 Call Wall and Bearish Put Pressure

The OTM call options with the most open interest are clustered around $92.5 and $100 strikes (expiring Jan 23). This isn’t random—NFLX20260123C92 and NFLX20260123C96 have 1,800+ contracts traded recently, suggesting big players are hedging a short-term bounce. But the put/call ratio for open interest is 0.91, meaning puts still dominate. The top OTM puts ($10, $8, $9) show heavy bearish conviction, especially with the stock hovering near its 200D support at $88.55.

Block trades on NFLX20260123C92 and NFLX20260123C96 (totaling $693k in turnover) are telling. These are likely institutional bets that NFLX will test $92.5 before earnings. But if the stock cracks below $88.72 (today’s low), the puts at $10 could trigger a cascade.

News: WBD Drama and Earnings Could Flip the Script

The $59B WBD acquisition is a double-edged sword. Goldman cut its target to $112, but HSBC and BMO are bullish, citing undervaluation after a 29% drop. The key? Q4 earnings on Jan 20. If NFLX beats estimates (projected $0.55 EPS), the $92.5 call wall could ignite. But if the WBD deal falters—Paramount’s $30/share bid looms—the puts at $10 might win.

Trade Ideas: Calls for the Bounce, Puts for the Breakdown

• Bull Play: Buy NFLX20260123C92 (strike $92.5, exp Jan 23). Entry: $88.74. Target: $93.54 (30D support). Stop-loss: $88.55. Why? The block trades and RSI suggest a short-term rebound.
• Bear Play: Short NFLX near $88.72 (intraday low). Target: $86.20 (lower Bollinger band). Stop-loss: $89.89 (intraday high). Why? The bearish engulfing pattern and heavy put OI at $10 signal risk.
• Neutral Play: Sell NFLX20260123P10 (strike $10, exp Jan 23) if NFLX holds above $88.72. Premium decay could work in your favor if the stock stabilizes.

Volatility on the Horizon

The next five days are critical. Earnings could validate the $92.5 call wall or trigger a breakdown. The WBD acquisition’s fate—whether Netflix sticks with its all-cash bid or Paramount takes over—will define the 30-day outlook. For now, the options market is pricing in a tight range: $88.55 (support) to $93.54 (resistance). Trade with a plan, and keep an eye on those block trades—they might be the first dominoes to fall.

Final Take: NFLX is a high-stakes poker game. The calls at $92.5 are a lifeline for bulls; the puts at $10 are a bearish anchor. Your move? Ride the bounce or hedge the breakdown—just don’t get caught in the crossfire when the WBD news drops.