Is Amazon’s Jeff Bezos eyeing Netflix? 

The options market was aflutter yesterday with speculation that Amazon.com may buy DVD rental company Netflix. With traders snatching up Netflix call options, shares of the company rose nearly 6 percent. On the flip side, Amazon put options were active as well, pushing its stock down nearly 2 percent. Analysts said that indeed, the stock move was pegged to the options chatter about a deal. They also said a deal was unlikely.

“The rumor machine continues to buzz today and the latest is that Amazon.com will buy Netflix Inc. Check out any news source to see that these rumors are unfounded,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group. He added, however, that the fact that Netflix was higher on a day when the broad markets were down “raises some suspicion”.

A Bank of America research note also said such a deal was unlikely. It argues the largest obstacle would be an issue surrounding state taxation for items sold on Amazon.

(Photo credit TOP; Amazon.com Chief Executive Officer Jeff Bezos. Reuters file. RIGHT; Netflix CEO and founder Reed Hastings. Reuters file)