Bullish Option Flow Detected In Netflix $NFLX Stock

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Bullish option flow occurred in Netflix $NFLX stock on October 19, 2022.

Bullish Option Flow

Netflix stock option flow on October19, 2022.

Make sure to review this lesson on option flow so that you understand the image above.

The more extreme bullish call option detected is the rising open interest in the June 16, 2023, $510 contract.

Netflix June 2023 $510 call option contract with open interest shown in bars.

Netflix price target raised to $285 from $230 at Macquarie

On October 19, 2022, Macquarie analyst Tim Nollen raised the firm’s price target on Netflix to $285 but kept a Neutral rating on the shares after the company posted a good beat on Q3 subscriber net adds and gave Q4 subscriber guidance of 4.2M subs, which he said reflects seasonal upside but not much help from the ad tier yet. While he is optimistic about growth from the ad tier and efforts to reduce password sharing, Nollen said P&L progress may take time.

Netflix price target raised to $365 from $325 at Oppenheimer

On October 19, 2022, Oppenheimer analyst Jason Helfstein raised the firm’s price target on Netflix to $365 and kept an Outperform rating on the shares as subscriber trends appear to have bottomed ahead of ad-tier launch and crack-down on account sharing, driving $NFLX up 14% in after-hours. Jason Helfstein thinks that the launch of ad-tier and early advertiser demand are giving management confidence to crack down on 100M shared accounts in 2023. Further, Helfstein thinks pushing shared accounts to ad-tier will not only drive subscriber growth but also quickly create an ad-supported audience, as Netflix does not expect meaningful downgrading, holding back 4K support to ad-free.

Netflix beats on top and bottom, adds 2.4M subs vs. 1.09M estimated

Netflix $NFLX Stock Technical Analysis

Netflix $NFLX stock is in a technical weak uptrend. The stock is approaching overbought territory, increasing the probability of profit take or even a trend reversal.

Netflix stock chart on October 19, 2022, with positive MACD and positive money flow.

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