Netflix (NASDAQ:NFLX) shares are down 1.6% to trade at $88.92 at last check, following a Bloomberg report that the streaming giant put forth an all-cash offer for Warner Bros. Discovery (WBD). The original deal -- valued at $83 million -- broke in early December and beat Paramount Skydance's (PSKY) larger bid, while Warner Bros.’ board called it “inferior” to the Netflix offer.
Netflix stock has been in a steady a downtrend since late June record high of $134.12, now trading at its lowest level since April. Despite being up 7% over the last 12 months, the stock has turned in only one weekly win since December.
In the options pits, NFLX sports a 10-day call/put volume ratio of 4.09 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other annual readings from the past year, hinting at a much healthier-than-usual appetite for bullish bets over bearish of late.
It's more of the same today. At last check, 129,000 calls and 33,000 have been exchanged. The January 2026 92.5-strike call is the popular active contract, followed by the 92-strike call in the same series, with new positions being bought to open at the former.
Options are an affordable route at the moment. The equity's Schaeffer's Volatility Index (SVI) of 44% stands higher than just 13% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
