Netflix is down more than 10 percent from its November peak, and now the bulls think it will rally back toward its recent highs.
OptionMonster's real-time systems detected the purchase of 5,392 January 60 calls against open interest of 2,403 yesterday. Most of the large trades priced for $0.40 to $0.55.
NFLX closed at $53.61 yesterday, up 0.35 percent. The stock climbed as high as $55.20 amid rumors that it might be purchased by Amazon.
The DVD and streaming video stock has been rallying higher this year on strong earnings and as it prepares to offer service over a broader range of devices.
Investors also snapped up January 55 calls for $1.40 to $2. Volume in the strike climbed to 3,547 contracts against open interest of 1,856 contracts.
Overall options volume was about four times the average level so far today. Calls outnumber puts by roughly 3 to 1.
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David Russell is a reporter and writer for OptionMonster.