Netflix could see a huge move on earnings next week

Investing


Netflix has been on a tear this year, and traders are expecting a big move when the company reports quarterly earnings Monday after the market close.

The options market is implying about a 7.5 percent move in either direction for the streaming giant, which is more than the average 5.5 percent move over the past four quarters, but less than the long-term average move of about 13 percent.

Shares of Netflix have surged nearly 15 percent in 2018 alone and are sitting about 3 percent from their all-time highs.

Looking at a chart of Netflix, Dan Nathan, co-founder and editor of RiskReversal.com, explained Thursday on CNBC’s “Options Action,” that “you see this thing riddled with massive gaps, and when it makes new highs, it oftentimes does that on earnings events.”

However, for those looking to use options to play Netflix, Nathan warned that “playing this thing with options is pretty expensive unless you’re looking for put protection on a long [position] that you already have big gains on over the last year.”

Analysts polled by FactSet are expecting Netflix to report earnings of $1.26 per share on $11.68 billion in revenue.



Source link

Products You May Like

Articles You May Like

Yacht company says they’ll take bitcoin, other cryptocurrencies for payment
Rates are ‘extreme.’ Expect a rally in bonds, utilities, says trader
6 things you should never put on a credit card
Apple buybacks, dividend increases under repatriation: UBS note
Goldman Sachs CEO Blankfein received a $2 million pay bump in 2017

Leave a Reply

Your email address will not be published. Required fields are marked *