Netflix Is Below 1-Year Lows With Heavy Call and Put Option Activity - Bullish Signals for NFLX

Group 1: Stock Performance - Netflix Inc. (NFLX) stock is currently trading at $83.29, which is down over 4.6% and below its one-year low prices of $85.59 and $86.67 [1] - Heavy out-of-the-money call and put option activity is observed, indicating a major bullish signal for the stock [1] Group 2: Warner Bros. Deal - Netflix has changed its bid for Warner Bros. Discovery (WBD) to an all-cash offer of $27.75 per share, valuing Warner Bros. at $82.7 billion based on its enterprise value [3] - The new offer includes an increased debt component of $42.2 billion, up from $34.0 billion as of December 19, 2025, but lower than the original deal's $59 billion [4] - WBD is currently trading at $28.55, suggesting that investors may be anticipating a higher offer from Netflix [5] Group 3: Competitive Landscape - Paramount is planning a proxy fight for WBD's board, which may create uncertainty and contribute to the volatility in NFLX stock [6] Group 4: Financial Performance - Netflix reported strong Q4 results with revenue increasing by 17.5% year-over-year and free cash flow (FCF) rising by 35.9% [7] - The trailing 12-month (TTM) FCF was reported at $9.461 billion, up 36.7% from the previous year and up 5.5% from the prior quarter's TTM FCF of $8.967 billion [8]