Options Traders Have Been Eyeing Netflix Stock After Earnings

Netflix Inc (NASDAQ:NFLX) stock has been mired in an extended pullback, which wasn't helped by a post-earnings drop on Jan. 21. The 20-day moving average has helped guide NFLX lower since the beginning of December, though the shares now appear to be consolidating above the $80 level -- a potential level of support for this pullback. 

Options traders have been targeting the streaming giant after earnings. In fact, NFLX made the list of Senior Quantitative Analyst Rocky White's equities that have attracted the highest options volume in the past two weeks. In the last 10 days, the stock has seen more than 3.9 million calls and 2.8 million puts exchanged, with the most activity at the May 68 call during this time.

The amount of call volume over the last five weeks is notable as well. NFLX's 50-day call/put volume ratio of 3.04 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all other readings from the past year. 

NFLX premium is reasonably priced at the moment, too. The stock's Schaeffer's Volatility Index (SVI) of 32% ranks in the very low 6th percentile of its annual range, meaning options traders are pricing in low volatility expectations.