Options Market Statistics: Netflix Stock Surges as Wall Street Boosts Price Targets on Strong Earnings Metrics, Options Pop

Options Newsman wrote a column · Jan 25, 2024 08:53

News Highlights

$NVIDIA (NVDA.US)$ shares rose by 2.49%, closing at $613.62. Its options trading volume is 1.95 million. Call contracts account for 59.6% of the whole trading volume. The most traded calls are contracts of $620 strike price that expire on January 26th. The total volume reaches 98,806 with an open interest of 9,420. The most traded puts are contracts of a $600 strike price that expires on January 26th; the volume is 82,775 contracts with an open interest of 4,714.

Once again in the new year, Nvidia and $Microsoft (MSFT.US)$ have drawn much of investors' interest in artificial intelligence, with both companies seen by strategists and portfolio managers as the de facto leaders of the AI boom.

Both of these stocks were on track to finish Wednesday at record highs, with Microsoft briefly seeing its market capitalization top $3 trillion for the first time. Nvidia, meanwhile, was on track to finish Wednesday's session with a market cap north of $1.5 trillion for the first time.

$Netflix (NFLX.US)$ shares rose by 10.70%, closing at $544.87. Its options trading volume is 0.71 million. Call contracts account for 57.7% of the whole trading volume. The most traded calls are contracts of $560 strike price that expire on January 26th. The total volume reaches 30,365 with an open interest of 6,668. The most traded puts are contracts of a $550 strike price that expires on January 26th; the volume is 18,751 contracts with an open interest of 29.

Netflix shares jumped on Wednesday after the streaming giant surprised Wall Street on Jan. 23 by reporting its second-best quarterly subscriber additions ever (13 million) and unveiling a 10-year, $5 billion deal for WWE flagship show Raw, as well as the sports entertainment powerhouse's content internationally.

The latter allowed the company to make a big splash in the live events content space that it has been targeting.

Expanding into live event programming is something we've talked about for quite a while, and this has been in the works, so we used to look at this as fits inside of our $17 billion programming spend now," said co-CEO Ted Sarandos on its earnings call.

$Meta Platforms (META.US)$ shares rose by 1.43%, closing at $390.70. Its options trading volume is 0.37 million. Call contracts account for 60.9% of the whole trading volume. The most traded calls are contracts of $395 strike price that expire on January 26th. The total volume reaches 29,057 with an open interest of 4,046. The most traded puts are contracts of a $390 strike price that expires on January 26th; the volume is 17,633 contracts with an open interest of 849.

Meta's market cap surpassed $1 trillion Wednesday, closing up more than 1% at $390 per share amid a record rally.

Meta last exceeded $1 trillion in market cap in 2021, when it was still known as Facebook. It was the company's first time hitting the milestone. In September 2021, its market cap approached $1.1 trillion.

The company's soaring stock performance comes on the heels of an almost 200% surge last year, when CEO Mark Zuckerberg instituted cost-cutting measures that brought about more than 20,000 job cuts. Zuckerberg described 2023 as a "year of efficiency" after its stock plummeted to a six-year low in 2022.

Shareholders are bullish on Meta as it seeks to strengthen its position as a heavy hitter in artificial intelligence.

Last week, Zuckerberg said Meta will obtain 350,000 H100 graphics cards from Nvidia by the year's end as well as "almost 600k H100 equivalents of compute if you include other GPUs," indicating the company is spending billions of dollars on its AI endeavors.

Options Market Statistics: Netflix Stock Surges as Wall Street Boosts Price Targets on Strong Earnings Metrics, Options Pop

Unusual Stock Options Activity

Some notable put activity is being seen in $NVIDIA (NVDA.US)$, which is primarily being driven by activity on the 16-Feb-2024 put. Volume on this contract is 53,118 versus open interest of 258.

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Daily Active Index & Sector ETF Options

Source: Barchart, Unusual Whales, CNBC

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