NFLX Options Signal Bullish Bias: Key Strikes and Trade Setups for the 10-for-1 Split Catalyst

• Netflix’s 10-for-1 stock split (effective this month) could boost liquidity and retail demand.
• OTM calls at $1200 and $1300 (next Friday expiry) show heavy open interest, hinting at bullish positioning.
• RSI at 26.12 suggests oversold conditions, but 200D MA at 1127.40 acts as a critical support.
• Insider selling and a bearish put/call ratio (1.05) add near-term caution.

Here’s the thing: Netflix’s options market is painting a mixed but ultimately bullish picture. While bearish sentiment lingers, the data screams that smart money is betting on a rebound—especially with the stock split and content expansion news. Let’s break it down.

Bullish Fireworks vs Bearish Anchors: Decoding OTM Options

The options chain for NFLX is a chessboard of strategic bets. For Friday’s expiry, OTM calls at $1200 (OI: 3059) and $1300 (OI: 2292) dominate, while puts at $1020 (OI: 2246) and $1060 (OI: 1627) show bearish hedges. But the real story is next Friday’s expiry: calls at $1150 (OI: 4804) and $1200 (OI: 3779) are the heavyweights. This suggests traders are pricing in a post-split rally, with $1150 as a key psychological target.

The put/call ratio for open interest (1.05) leans slightly bearish, but the sheer volume of call OI (360,616) vs puts (377,692) isn’t a red flag—it’s a tug-of-war. Think of it like a seesaw: bears are holding the rope, but bulls are pulling harder. The danger? If the stock dips below 1092 (30D support), those puts could trigger a cascade of selling.

Block trading is quiet right now, which means no massive institutional moves to skew the data. But the next Friday expiry’s $1150 call OI is a whale-sized bet. If NFLX breaks above the upper Bollinger Band (1244.08), this strike could become a liquidity magnet.

News as Fuel: Split, Content, and the Battle for Subscribers

Netflix’s 10-for-1 split isn’t just a cosmetic change—it’s a liquidity lifeline. Lowering the share price makes the stock more accessible to retail investors, who could drive volume higher. Combine that with the 50–75 video podcasts planned for 2026 and the Mike Tyson special, and you’ve got a content pipeline that could juice user engagement and ad revenue.

But here’s the catch: insider selling (like David Hyman’s $45M dump) clouds the narrative. Profit-taking is normal, but if more insiders follow, it could spook the market. Still, high institutional ownership (mentioned in the news) acts as a stabilizer. These pros aren’t panicking—they’re betting on long-term growth.

The macro angle is also interesting. With households spending $1,000/year on streaming, Netflix’s ad-supported tier (now at 190M viewers) could become a cash cow. That’s a bullish tailwind, especially if the economy softens and consumers prioritize streaming over other discretionary spending.

Trade Setups: Leverage the Split and Ride the Bullish Wave

For options traders, the $1150 call (next Friday expiry) is a no-brainer. With 4804 open contracts, it’s the most liquid strike for a leveraged play. If NFLX breaks above the 1136.19 middle Bollinger Band, this call could explode. Entry: $1150 strike, target: $1200 (next key level). Stop-loss below 1112.8 (intraday low) would protect against a breakdown.

Bearish hedges? A bear call spread using $1150 and $1200 calls (next Friday) could cap risk. Sell the $1200 call to offset the $1150 premium. If NFLX stalls at 1200, you pocket the spread. But if it surges past 1200, you’ll miss out—so this is a safer, limited-reward play.

For stock traders, the 1127.40 200D MA is a golden entry point. If NFLX holds above 1112.8 (intraday low), consider buying near $1120–1125 with a target at 1136.19 (middle Bollinger Band). A break above 1136.19 could push toward 1200, aligning with the call options’ bullish thesis. If it drops below 1092, consider shorting or buying puts at $1060 (OI: 1505) for a bearish play.

Volatility on the Horizon: Balancing the Scales

The next two weeks are critical. The stock split (this month) and the Mike Tyson special (2026) are catalysts that could push NFLX above 1200. But keep an eye on insider selling and Comcast’s $2.1B deal—these could create headwinds. The key is to stay nimble: use the $1150 call as a leveraged bet, but hedge with a stop-loss below 1112.8. If the split drives a breakout, the 1200 call OI could turn into a rocket ship.

In the end, NFLX is a stock caught between a bullish future and a cautious present. The options market is pricing in optimism, but the path isn’t without potholes. For traders, the sweet spot is to ride the split-driven momentum while keeping a tight leash on risk. After all, in crypto and stocks alike, it’s not about being right—it’s about being ready.