The Unusual Options have leaked NFLX's collapse
$Netflix(NFLX)$ plummeted as what I said in In my last article:What trading opportunity from NFLX‘s options？
In particular, someone spent $400,000 bought NFLX's PUT at price of $250. Sure enough, $400,000 is not a gamble for no reason! Moreover, before the result releases, the positions of PUT were overwhelmingly more than CALLs.
As I said that $250 is the price of NFLX at the end of 2019. If the stock price falls to here tonight, what will be rebounce or not?
I think there is a high probability to bounce. From the figure below, the double bottom of 2019 is around $230 and $250. NFLX has a support here. Referring to the last rebound strength, it will probably rebound to around $300. However, the fundamentals of NFLX is terrible so that we only can trade short-term.
Look at$Tesla Motors(TSLA)$ which will be release result tomorrow morning. Now its CALL/PUT Ratio = 1.61. The options due this week, the differences in CALL/PUT positions between $900 to $1200 is not particularly exaggerated, but it can be seen that there are more CALL positions, and it seems that there are more bulls.
Due to the sharp rise in stock prices last night, the trading volume of options due this week was huge last night, and the trading volume of more than $1,000 CALL basically exceeded the positions. Many people took profit or runoff its postions before the earnings.
At present, the CALL with more than 10,000 volume is $1050, $1100 and $1200 respectively
The largest PUT position is $950, but its volume is less than 10,000
The latest option changes show that large orders with turnover exceeding 10 million US dollars are straddle at price of $1000.
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