Why Call Traders Aren't Giving Up on Netflix Stock

Shares of Netflix Inc (NASDAQ: NFLX) were last seen up 1.7% at $71.26, extending their rebound, after a post-earnings selloff earlier this month. Despite topping earnings estimates, the streaming giant's revenue missed Wall Street estimates, sending the shares to 52-week lows. NFLX has reclaimed some ground since then, but the shares remain below their pre-earnings levels. Year to date, the equity is down 24%.

Per Schaeffer's Quantitative Analyst Rocky White's list of stocks sporting the most active options over the past two weeks, Netflix saw more than 4.6 million calls and 2.5 million puts exchanged during this time frame. The most activity was seen at the weekly July 24 70-strike call, followed by the weekly July 24 69-strike call.

This bullish options sentiment extends beyond the last 10 days. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), Netflix's 50-day call/put volume ratio of 3.12 ranks higher than 86% of readings from the past year. 

Meanwhile, the stock's Schaeffer's Volatility Scorecard (SVS) stands at 90 out of 100, indicating NFLX has consistently exceeded options traders' volatility expectations over the past 12 months.