NFLX Options Signal $95 Call Contention: How to Play the Merger-Driven Volatility Play

• Netflix’s $93.86 price tag today sits just below its 30-day moving average of $134.12, hinting at a long-term bearish bias.
• Options market shows heavy call open interest at the $95 and $98 strikes for Friday expiration, while puts pile up at $88 and $93.
• The $82.7B WBD acquisition looms large—regulatory risks vs. consolidation potential could swing NFLX 10%+ either way.

The options market is whispering: 'Bullish near-term, but don’t sleep on the puts.'Bullish Calls vs. Bearish Puts: A Battle for $95

This Friday’s options chain tells a story of cautious optimism. The $95 call (NFLX20260102C95) has 20,623 open contracts—the second-highest on the board—while the $98 call (NFLX20260102C98) trails closely with 14,193. These strikes act like a magnet for traders betting on a post-merger pop. But don’t ignore the puts: the $88 put (NFLX20260102P88) has 4,930 open contracts, suggesting some hedging against a debt-laden stumble. The 1.07 put/call ratio for open interest isn’t screaming bearish, but it’s not bullish either. Think of it as a tug-of-war: bulls want $95+ by Friday, bears are bracing for a $88 floor.

Merger Drama vs. Content Firepower: What’s Driving the Narrative?

The WBD acquisition is a double-edged sword. On one hand, it’s a $59B bridge loan gamble that could make Netflix the undisputed global entertainment king. On the other, regulators might slice this deal to pieces. Meanwhile, the content pipeline—Narnia, Bridgerton, One Piece—is a revenue engine. But here’s the catch: those blockbusters need to offset $14.5B in long-term debt. The market’s mixed signals? The calls at $95 reflect hope for a smooth merger, while the puts at $88 price in a worst-case scenario. Retail investors are betting on both outcomes—it’s a high-stakes poker game.

Trade Ideas: Calls for the Brave, Puts for the Pragmatic

For the bold: Buy the NFLX20260102C95 calls at $93.86. If NFLX breaks above today’s intraday high of $93.99, these strikes could catch a tailwind from merger optimism. Target a $95.50 exit if the stock gaps up Friday. For the cautious: A collar strategy with NFLX20260109P93 puts and NFLX20260109C100 calls next week could lock in a $93–$100 range. The stock’s RSI at 39.77 suggests it’s not far from oversold territory—watch for a rebound off the $93.34 intraday low.

Volatility on the Horizon: Merger or Meltdown?

Netflix’s options market is a chessboard. The $95 call contention and $88 put defense set up a tightrope walk between merger euphoria and debt dread. If the WBD deal survives regulatory scrutiny, NFLX could test the $100 level by next Friday. But if the Fed tightens further or content costs spiral, the $86.67 Bollinger Band floor becomes a critical support. Either way, this is a stock where patience pays off—especially with Bollinger Bands hinting at a potential $93–$107 trading range in the near term. The key takeaway? Position for a $95 breakout, but keep a $88 safety net. The next two weeks will tell if Netflix’s gamble pays off—or crashes like a poorly timed sequel.