NFLX Options Signal Bullish Bias: Calls at $1200 vs. Puts at $1000 – Here’s How to Position for the Split-Driven Rally

• Netflix’s 10-for-1 stock split lowers the price to ~$110, boosting retail liquidity and call option demand.
• Options data shows heavy call open interest at $1200 and $1300, while puts cluster at $1000 and $900—hinting at a bullish/bearish tug-of-war.
• RSI at 63.4 and MACD divergence suggest short-term consolidation ahead of a potential breakout.

Here’s the core insight: options market sentiment and technicals align for a bullish bias, but with caution needed near key resistance levels. The stock’s 10-for-1 split, combined with heavy call buying at higher strikes, points to a retail-driven rally—yet bearish puts at $1000 hint at hedging activity. Let’s break it down.

The Call/Put Imbalance: A Battle for NFLX’s Next Move

The options chain tells a story of optimism and caution. For Friday’s expiration, calls at $1200 ($OI: 4630) and $1300 ($OI: 2474) dominate, while puts at $1020 ($OI: 2079) and $1100 ($OI: 1679) anchor the downside. For next Friday, the skew intensifies: calls at $1340 ($OI: 2858) and puts at $900 ($OI: 2184) show a widening gap in expectations.

The put/call ratio for open interest is nearly balanced at 1.05, but the strike distribution tells a different tale. Heavy call buying at $1200+ suggests investors are pricing in a post-split rally, while puts at $1000 act as a safety net for a potential pullback. The risk? If the stock fails to break above $1200, those calls could expire worthless, leaving buyers with losses. Conversely, a drop below $1050 might trigger panic selling.

Block trades are absent, so no whale moves to flag—this is a retail and institutional tug-of-war for now.The Stock Split Narrative: Why This Matters for NFLX

Netflix’s 10-for-1 split isn’t just a number game. By lowering the price to ~$110, the company is inviting smaller investors to the table, which historically boosts liquidity. Analysts like Morningstar see the stock as undervalued post-split ($77 fair value), but the market’s current pricing (~$1146) already factors in this move.

The news flow is mixed: Elon Musk’s anti-Netflix comments caused a short-term dip, but new content (like the Mike Tyson special) and ad-tier expansion could offset that. The key question: Will the split drive enough retail buying to push the stock above its 200D MA ($1129) and into the $1200+ range? Options data suggests yes—but only if earnings and content rollout meet expectations.

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, the most compelling plays are:

• Bullish: Buy NFLX 12/19 $1200 calls (OI: 4435) for next Friday’s expiry. The $1200 strike is a psychological hurdle; a breakout here could trigger a cascade of stop-loss orders above $1250.
• Bearish: Buy NFLX 12/19 $1000 puts (OI: 3273) as insurance against a sharp drop. The $1000 level is a key support area; a close below $1050 would validate the bear case.

For stock traders, consider:

• Entry near $1092–1095 (30D support) if the stock rebounds from its recent dip. Target $1160–1175 as a short-term goal, with a hard stop below $1070.
• Aggressive longs could enter near $1145 (intraday low) with a target at $1213–1223 (200D resistance). A break above $1250 would signal a new bullish phase.

Volatility on the Horizon: Balancing Bullish Momentum with Prudent Risk Management

The coming weeks will test NFLX’s resolve. The stock split is a catalyst, but execution on new content and ad-tier growth will determine its long-term trajectory. For now, the options market is pricing in a high-probability rally, but don’t ignore the bearish puts at $1000—they reflect a realistic downside scenario.

Your takeaway? Position for a bullish breakout with calls at $1200, but hedge with puts at $1000. The split lowers the barrier for retail buying, but macro risks (like Musk’s social media sway) remain. Stay nimble, and watch those key levels like a hawk.