From CNBC · Tyler Bailey · · 1m 10s
Netflix traders bet on end to earnings volatility
Options markets show unusual optimism ahead of Netflix earnings, with traders positioning for a major move after quarters of disappointment.
In brief
Options markets show unusual optimism ahead of Netflix earnings, with traders positioning for a major move after quarters of disappointment. Options traders are betting Netflix's pattern of quarterly disappointments may end, with current prices implying a nine percent post-earnings move. Originally reported by CNBC.
Netflix heads to earnings with stock down sharply
Netflix stock has fallen nearly fifty percent from all-time highs amid leadership changes, layoffs and a failed takeover bid. The company reports earnings today.
Options traders expect a nine percent move
Current options prices imply a nine percent post-earnings move for Netflix, the highest since Q three twenty twenty-two when it was priced for an eleven percent move.
Bullish bets replace pattern of disappointment
One and a half times more calls than puts were bought as of twelve pm ET Tuesday. The largest single trade was a seller of November twenty expiration seventy-strike puts for about two million dollars.
Traders position for major upside surprise
Traders bought more than thirty-five hundred eighty-strike calls expiring Friday for over two hundred ten thousand dollars in premium. That requires Netflix to surge at least twenty percent by Friday to break even.
The one thing
Options traders are betting Netflix's pattern of quarterly disappointments may end, with current prices implying a nine percent post-earnings move.
