Netflix Stock Could Burn Options Bears in October

Netflix Inc (NASDAQ:NFLX) stock is 1.8% higher to trade at $1,236.56 today, heading for its highest close in nearly a month. The streaming giant is up a modest 38.7% in 2025, but could be headed for an outstanding month, if past is precedent.

Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the 25 best-performing stocks in October in the last 10 years on the S&P 500 Index (SPX). NFLX is far and away the best historical performer in October, boasting an average monthly return of 7.6% and a win rate of 80%. Netflix is also the only "media" stock on the list.

A move of similar magnitude would put NFLX not far off its June 30 all-time high of $1,341.15. The company reports third-quarter earnings after the market closes on Tuesday, Oct. 21. The shares have a rather upbeat post-earnings history, with a 11.1% post-earnings pop last October and an average post-earnings return of 8.1%, regardless of direction. 

An unwinding of pessimism amongst options traders could push the stock higher as well. Netflix's 10-day put/call volume ratio of 1.03 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 92% of readings from the past year.

Options are affordably priced, as NFLX's Schaeffer's Volatility Index (SVI) of 28% ranks in the 9th percentile of annual readings. This means options traders are pricing in low volatility expectations.