Traders are betting Netflix's stock drama may be coming to an end
Current options prices are implying a 9% post-earnings move for Netflix, which is the highest since its Q3 2022 report, when it was priced for an 11% move.
TL;DR
- Netflix stock is down nearly 50% from its all-time highs, accompanied by corporate drama.
- Options traders are betting on a potential end to this slump, with a 9% implied post-earnings move.
- This implied move is the highest since Q3 2022, when Netflix shares beat expectations.
- Recent options activity shows more calls being bought than puts, and more puts being sold than bought.
- A large trade involved selling out-of-the-money puts, indicating confidence in the stock.
- There was also notable call buying for contracts that would require a 20% stock surge by Friday.