A large sweep hit the tape for Netflix as traders aggressively bought the December 12, 2025 $98 calls, paying a total premium of $1.1 million. Daily volume surged to 4,403 contracts (at the time of the trade) versus an open interest of just 181. This produces a highly unusual 24× V/OI ratio, strongly suggesting new long positions rather than closing trades. With just about a week until expiration and the spot price above the strike, this sweep reflects a high-conviction bet on continued short term volatility momentum in NFLX.
Volume and Open Interest Data
The volume and open-interest data for the NFLX 12/12/2025 $98 calls highlight a major spike in trading activity on 12/05/25. 5,313 contracts traded hands—dramatically higher than any prior day. This heavy volume was accompanied by an OI increase of +65 from the previous trading session This confirms that at least part of the activity represented new positions being opened, not just closing trades.
In the days leading up to the surge, volume was modest (97 and 147 contracts), but OI steadily climbed, indicating growing interest before the large sweep hit. Notably, despite the surge in demand, the contract price actually declined from 6.20 to 3.55, suggesting traders were aggressively buying into weakness, potentially positioning for a rebound or anticipating future volatility expansion. Overall, the data shows a sharp influx of short-dated call positioning with meaningful increases in open interest, reinforcing the conviction behind the earlier sweep activity.
Trade Side Distribution
The trade-side distribution for the NFLX 12/12/2025 $98 calls shows overwhelmingly aggressive buy-side order flow. 100% of the recorded premium spent at or above the ask. The chart indicates that $1.1M (71%) of the premium was executed above the ask, while an additional $447.5K (29%) hit the ask directly. There were no trades at the bid, mid, or below, which removes any ambiguity about seller-driven or neutral flow.
This pattern reflects strong urgency from buyers who were willing to pay up to secure contracts, reinforcing the conviction behind the earlier large sweep activity. Overall, this distribution confirms that the recent surge in volume was dominated entirely by aggressive call buyers taking exposure in NFLX.
What’s Happening with NFLX
Netflix has had a whirlwind few weeks, highlighted by a blockbuster deal and notable market volatility. The company agreed to buy Warner Bros, Discovery’s TV and film studios and its HBO Max streaming business in a cash-and-stock transaction valued in the $70–80 billion range. The move would massively expand Netflix’s content library but is expected to face intense antitrust scrutiny in the U.S. and Europe and has stirred objections from rival bidder Paramount Skydance.
This announcement comes on the heels of Q3 2025 results that showed revenue growing about 17% year over year but earnings per share missing Wall Street forecasts due to a one‑off Brazilian tax expense. The earnings miss prompted an initial after‑hours selloff even as management reiterated a strong full‑year outlook with roughly $45 billion in revenue, a high‑20s operating margin, and around $9 billion in free cash flow.
Netflix also completed a 10‑for‑1 stock split in mid‑November to make its shares more accessible. The stock—up strongly over the past year—has pulled back in recent sessions as investors digest the Warner Bros. deal, the earnings miss, and the prospect of a tougher regulatory battle ahead.
About NFLX
Netflix is a global streaming entertainment company that delivers on-demand movies, TV series, documentaries, and original productions to subscribers across more than 190 countries. Operating primarily through its subscription-based platform, Netflix offers a vast content library alongside a rapidly growing lineup of “Netflix Originals,” which includes award-winning films and series produced in-house.
The company has transitioned from its early days as a DVD-by-mail service to a dominant force in digital streaming, leveraging data-driven personalization, international expansion, and large-scale content investments to maintain its competitive position. In recent years, Netflix has also expanded into mobile games and interactive content, further broadening its entertainment ecosystem.
Analyst Ratings
| Firm | Rating | Updated |
|---|---|---|
| CFRA | ★★★★☆ (4 stars) | 12/02/2025 |
| Market Edge | Avoid | 10/28/2025 |
| Argus | Buy | 10/23/2025 |
| Morningstar | ★★☆☆☆ (2 stars) | 12/04/2025 |
| LSEG | Outperform | 12/04/2025 |
| Schwab Equity Ratings | B | 12/04/2025 |
The analyst ratings for Netflix show a wide dispersion of opinions, reflecting a market divided on valuation and future performance. CFRA provides a bullish four-star rating, while Argus also issues a clear Buy recommendation, and LSEG labels the stock Outperform, signaling confidence in long-term growth. Schwab assigns a B, indicating above-average expectations.
In contrast, Morningstar takes a more cautious stance with a two-star rating, suggesting limited upside relative to risk, and Market Edge is notably bearish, assigning an Avoid rating. Overall, the sentiment skews moderately positive but with meaningful disagreement among analysts, highlighting differing perspectives on Netflix’s competitive position and forward earnings outlook.
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Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
