Netflix Draws Bullish Options Bets Before Earnings as Calls Top Puts by Nearly 3-to-1
Updated
Updated · CNBC · Jul 13
Netflix Draws Bullish Options Bets Before Earnings as Calls Top Puts by Nearly 3-to-1
3 articles · Updated · CNBC · Jul 13
Summary
Call buying in Netflix accelerated ahead of Thursday earnings, with volumes doubling puts on Friday and Monday and nearly 3-to-1 by midday Monday.
A 7.6% post-earnings move is priced into options—close to the 7.4% average realized swing over the past year—as traders also sold at-the-money puts, including heavy activity in the $75 strike expiring Friday.
Netflix shares, down almost 20% this year and near $75, are testing technical support around the rising 200-week moving average and the $70 breakout level from late 2021.
The bullish positioning comes despite weak recent precedent: the stock fell after each of its last four earnings reports, and media analysts say Netflix lacked a major breakout hit last quarter.
Nielsen data showed Netflix's share of TV viewership at its lowest in more than a year, underscoring concerns that engagement growth is lagging subscriber gains as ad-supported users watch less and competition rises.