Netflix’s Unusual Options Activity: Was It the Bullish Signal Investors Were Waiting For or a Dead Cat Bounce?

The sales data for the $90 and $105 calls expiring on May 15 points to Bull Call Spreads. While the odds of the share price being above the $92.98 breakeven at expiration are a little over one in four, the outlay of $2.98 (3.6%) is reasonable, especially when you can roll the spread to a later expiration by selling the existing bull call spread and buying a new one. While it adds to the total cost, it gives you more time for the strategy to play out.As you can see above, all five of the options with the hig ...