Over the past several weeks, there has been a significant insider selling in Netflix Inc (NASDAQ: NFLX). The breadth of selling has included some high-profile names, one of which is the Chief Content Officer. As the price has sputtered and viewers are becoming more indecisive, the company is preparing the launch of a “shuffle button.” As insiders are picking up the pace of profit-taking, it may make sense for investors to shuffle their ownership of Netflix as its credits may be starting to come into view.
NFLX is testing a new “shuffle play” feature for its video streaming platform. The current test isn’t the only feature to have been tested recently. Last year, the company tested a feature that allows the user to “shuffle” the episodes of a series. While the test is being rolled out globally, there hasn’t been a formal announcement of the feature being launched.
While the company is looking for ways to spice up the content through new features, the insiders may need something new to add more incentive for holding their shares of stocks. Recently, there has been a rash of option exercises that has led to the largest amount of insider sales and volume in close to two years and we’re not done with the month yet.
Some of the higher profile sellers are the Co-CEO and Chief Content Officer Theodore Sarandos who’s sold 90,000 shares in the past two weeks. Another seller is the former National Security Advisor to President Obama and ambassador, Susan Rice.
Action to Take: NFLX is a short opportunity with a close below $466.50 on above average volume.
Speculators may want to consider buying the 18 DEC 20 420/400 long put vertical for around $5.