Netflix is a company that lets people watch movies and shows on their phones, tablets, computers, or TVs. Some people who own shares of Netflix (called options) have been buying and selling them more than usual recently. This article talks about what these people are doing with their shares and why it's important to watch. The prices they are interested in are between $330 and $545 per share. Read from source...
1. The article title is misleading, as it implies that there was some unusual or abnormal options activity for Netflix on January 18, which is not supported by the data presented in the text. In fact, the article does not provide any specific information about the date of January 18, and only mentions it as part of a larger range of dates (the last three months).
2. The article uses vague and ambiguous terms such as "major market movers" and "significant trades", without defining or quantifying them. These terms suggest that there was some substantial and noteworthy options activity for Netflix, but the text does not provide any evidence to support this claim.
3. The article focuses on a relatively wide price band of $330.0 to $545.0, which spans more than 100% of Netflix's current market capitalization (as of January 29, 2021). This is an unusually large range for options trading, and implies that the author is either unaware of or ignoring the concept of implied volatility, which measures the expected price movement of an asset based on its option prices.
4. The article provides a snapshot of the trends in volume and open interest for calls and puts across Netflix's significant trades, but does not compare them to any relevant benchmarks or historical data. For example, it would be useful to know how these metrics compare to the average daily trading volumes and open interest for Netflix options, or how they have changed over time.
5. The article includes a brief summary of Netflix's business model, which is irrelevant and outdated for an analysis of its options activity. The author should focus on the factors that drive the demand and supply of Netflix's options, such as its financial performance, growth prospects, competitive landscape, regulatory environment, etc.
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