Call traders target Netflix stocks after acquiring video games
Netflix has acquired video game maker Night School Studio
In order to diversify its sources of income, Netflix Inc (NASDAQ: NFLX) has announced that it has purchased video game maker Night School Studio, best known for the supernatural-themed video game “Oxenfree”. Additionally, the company has rolled out five mobile games in select European markets, which, alongside the studio’s games on PlayStation, Xbox, Switch and PC, will be included as part of a Netflix subscription.
At least one analyst has made his optimism known, with Benchmark increasing its price target to $ 493 from $ 448. The brokerage group was bullish before today, with 23 of the stock’s 29 ratings a “buy” or better. Additionally, the 12-month consensus price target of $ 617.12 is a 3% premium from current levels.
Options traders have also rarely been more bullish. On the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), Netflix stocks sports a 50-day call-to-sales volume ratio of 2.24, which is over 88% of last year’s reads. This means that long calls are picked up faster than usual.
This penchant for bullish betting is also rife in options pits today, with 47,000 calls already crossing the strip – a volume that is double what is typically seen at this point. The most popular by far is the weekly 10/1600 strikes call, where new positions are bought to open.
Netflix stock was last seen up 2.3% to trade at $ 597.07. The stock fell sharply recently from its all-time high on Sept. 8 of $ 615.60, although the stock’s 20-day moving average managed to capture most of that sell-off and guide stocks toward the lower. top graphics. The stock is gearing up for its second consecutive monthly win and is up 11.7% in 2021. Longer term, equity is up 22.5% year over year.