NFLX Options Signal Bullish Bias: $90 Call OI Surpasses $85 Puts as WBD Deal Nears Deadline

• NFLX surges 2.99% to $86.04, trading near 200D support at $83.54
• Call open interest dominates with $100 strike leading at 51,739 contracts
• Block trades show $290K sold in NFLX20260220C80 call options

Here’s what’s happening: Options data and technicals are painting a clear picture. With the WBD acquisition deadline looming, traders are betting big on a rebound—but the path isn’t without risks.

Bullish Pressure in Options, But Caution Lingers

The options market is a goldmine of insight. For this Friday’s expirations, the $90 call (51,739 OI) and $96 call (36,048 OI) dominate, while puts max out at $85 (13,061 OI) and $83 (11,805 OI). This skew suggests traders expect a short-term pop—maybe a bounce off the Bollinger Band lower bound ($84.33). But don’t ignore the puts: the $85 strike is a key psychological level, and heavy put OI there hints at hedging activity.

Block trades add intrigue. A $290K sale of NFLX20260220C80 calls (Feb 20 expiry) suggests smart money is short-term bearish, while the NFLX20260320P85 put block ($170K) implies long-term caution. Think of it like a chess game: bulls are stacking chips on the table, but bears are buying insurance.

News Flow: Acquisition Drama Fuels Volatility

The WBD saga is the elephant in the room. Argus slashing its price target to $110 from $141? That’s a headwind. But here’s the twist: 93% of WBD shareholders rejected Paramount’s $30/share bid, and Netflix’s CEO is confident they’ll win approval. This creates a binary event—if the deal closes, NFLX could rally toward $110. If it fails? The stock might crater again.

The recent 35% drop from its peak? That’s panic selling. But the 325M subscriber milestone and $3B ad-tier goal for 2026 show long-term strength. Investors are betting the acquisition is a "strategic accelerant," even if it means swallowing $42B in bridge loans.

Trade Ideas: Calls for Conviction, Puts for Protection

For options traders:

• Bullish Play: Buy NFLX20260130C90 (next Friday expiry) if NFLX breaks above $86.30. Target $95–$100 if the WBD deal gets a green light.
• Bearish Hedge: Buy NFLX20260123P85 (this Friday expiry) to protect against a drop below $83.54 support.

For stock traders:

• Entry: Consider buying near $83.54 if the price holds above the 200D support.
• Target: Aim for $90.38 (middle Bollinger Band) as a first test.
• Stop: Below $83.29 intraday low would confirm breakdown.

Volatility on the Horizon

The next two weeks are critical. With the WBD deadline on Feb 20 and options expirations on Jan 30, expect a rollercoaster. The $90 call and $85 put strikes will be lit up as traders position for outcomes. If NFLX can hold above $84.33 (lower Bollinger Band), the 2.9% rally today could be just the beginning. But if the $83.54 support breaks cleanly, brace for a test of the $80 puts.

Bottom line: This is a high-conviction trade. The options data leans bullish, but the WBD deal’s outcome remains a wild card. Play it smart—hedge your bets, and keep an eye on that $85 level. The market’s watching, and so should you.