Netflix closed at $70.30, down 1.77%.

Block activity showed a $2.14 million net-debit put combination targeting the 65.00 and 60.00 strikes for 2026, alongside a $577,500 short put at the 65.00 strike for 2027. The largest order was a long put combination rather than a simple hedge, indicating that institutional conviction favored downside premium rather than neutral income. Total flow leaned bearish, with heavier downside positioning than bullish speculation.

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Options Indicators

Netflix’s implied volatility is 47.44%, and with an IV percentile of 86.06%, current option volatility sits in an elevated range, indicating that options are priced expensively relative to Netflix’s own recent history. The IV/HV ratio of 1.38 further suggests implied volatility is running above realized volatility, reinforcing the view that the options market is embedding a relatively rich premium for near-term movement.

The Call/Put volume ratio is 1.97.

Large Trades

A bearish put-buying spread-like combination with a net debit of $2.14 million was the standout large trade, consisting of purchases of the 65.00 put and 60.00 put expiring on 2026-11-20, both struck below the $70.30 reference price and therefore out of the money. Because this structure includes two bought puts, it is best interpreted as a same-direction long put combination rather than a synthetic position, expressing a directional bearish view with leverage to a larger downside move over a longer horizon. The use of two lower-strike puts suggests the trader is positioning for substantial weakness rather than simply hedging near-term noise, and the fact that both legs were bought points to premium paid for downside exposure rather than premium collection.

A short 65.00 put worth $577,500 was the other highlighted large trade, with 1,500 contracts sold against the 2027-03-19 expiration. With the strike below the current $70.30 reference price, this put was out of the money at execution, making the trade a moderately bullish to neutral-income stance: the seller is effectively expressing confidence that Netflix can remain above $65.00 through expiration, while also being willing to take assignment at a lower effective entry level if the stock declines. Even so, the broader large-trade flow still leans bearish overall, as the biggest order of the session was a sizable net-debit downside put combination and total block activity shows heavier downside positioning than upside speculation. In short, institutional sentiment appears cautiously to moderately bearish, with traders showing greater willingness to pay for protection or downside exposure than to press aggressive bullish bets.

Strategy Reference

For a low assignment probability, a seller could consider the 55.00 put for a nearer expiration, which sits roughly two standard deviations below the current $70.30 reference under elevated IV; alternatively, a bear put spread using the 65.00/60.00 strikes for 2026 would cap margin while still aligning with the dominant downside flow without requiring the full $2.14 million debit.