NFLX Options Signal Deep Put Pressure at $95: Here's How to Hedge or Profit Before Earnings

• Netflix (NFLX) trades at $95.48, down 1.35% from its $96.79 close amid a short-term bearish Kline pattern.
• Options data shows a 1.11 put/call open interest ratio, with next Friday’s $95 put strike dominating (OI: 28,675).
• RSI at 31.42 and MACD divergence hint at oversold conditions, but bearish options suggest caution.

The stock is caught in a tug-of-war: fundamentals scream resilience (Q3 revenue up 22%, new content partnerships), but options traders are betting on a test of $95 support. Let’s break down what this means for your strategy.Bearish Put Pressure and Quiet Block Trades

The options market is heavily skewed toward downside protection. For next Friday’s expiration (Dec 19), the NFLX20251219P95 put has the highest open interest (28,675), followed by the $94.5 and $45 strikes. This suggests institutional players are hedging against a potential drop below $95—a level just 50 cents above today’s intraday low.

But here’s the twist: while the put/call ratio is bearish, there’s no block trading activity to signal large institutional bets. That means the pressure is coming from retail and smaller players, not a coordinated move by whales. Your takeaway? The $95 level is a psychological battleground. If NFLX holds above it, the puts could expire worthless. If it breaks, the $91–$90 put strikes (OI: 10,057 and 4,429) might see action.

News Flow: Strong Fundamentals vs. Technical Jitters

Netflix’s recent headlines are a goldmine: record revenue, a new CFO with global expertise, and a $500M gaming acquisition. The Q3 beat and ad-supported tier rollout should fuel long-term optimism. Yet the stock is down 1.35% today. Why?

The disconnect might stem from short-term profit-taking after the all-time high of $650 earlier this year. Traders are pricing in volatility ahead of Q4 earnings (Jan 15) and digesting the aggressive content spending. Think of it like a sprinter pausing mid-race—still fast, but catching breath before the next push.

Actionable Trade Ideas for NFLX

1. Bear Put Spread for Cautious Bears: Sell the NFLX20251219P95 at $1.20 and buy the NFLX20251219P90 at $0.70. This $0.50 credit spread caps risk at $4,500 if the stock gaps down but nets profit if NFLX holds above $95.

1. Bull Call Buy-Write for Optimists: Buy NFLX at $95.50 and sell the NFLX20251219C100 call at $0.80. If the stock rebounds to $100 by Dec 19, you lock in a 5% gain plus the $0.80 premium.

1. Stock Entry Play: Consider buying NFLX near $96.79 (30D support) if it bounces off the 30D moving average. Target $100 if the 100D MA at $1024.45 holds—though that’s a stretch given the bearish trend.

Volatility on the Horizon

The next two weeks will test NFLX’s resolve. A close above $97.11 (intraday high) could reignite the bullish momentum from Q3. Below $95, though, and the bearish options bets start to look prescient. Either way, the $95–$96.79 range is your sweet spot for entries or hedges.

Keep an eye on Q4 earnings in January—it’s where the real story unfolds. For now, the options market is giving you a seat at the table. Take it with a clear plan and a cool head.