As Netflix Gets Ready For Earnings, Here's What Options Market Indicates About The Stock


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


Netflix Inc (NASDAQ:NFLX) is scheduled to report its first quarter earnings on Tuesday. The streaming giant is expected to post revenue of $8.17 billion in the first quarter, according to data from Benzinga Pro. The company is expected to post earnings per share of $2.85.

The stock has gone through bouts of volatility this year. After breaching the $367 mark in January, the stock fell all the way below the $293-level in March, only to rise back above the $348-level in early April.

Also Read: How To Buy Netflix (NFLX) Stock

As the streaming giant prepares to announce its earnings, here's a look at how professional traders are factoring-in crucial support and resistance levels for the stock:

1. Resistance: Shares of Netflix closed 1.75% lower on Monday at $332.72. Options expiring on Friday indicate a fair open interest accumulation at the $340-mark amongst out-of-the-money Call strikes, at the time of writing. However, the lacklustre figure could be possibly indicating an absence of conviction on a particular resistance level in the short term.

The daily candlestick pattern of Netflix stock, as shown below by the chart available on Benzinga Pro, indicates the $349 mark remains a key short-term hurdle and only a confident rally beyond this mark could take the stock to the next resistance level that lies close to the $370-level.

Source: Benzinga Pro

2. Support: On the downside, significant open interest accumulation could be seen at the $310-mark amongst out-of-the-money Put strikes expiring on Friday. This indicates professional traders could be factoring-in this level as a potential support for the near term.

It is noteworthy that open interest data only provides a fair idea about supports and resistances. A major corporate news or a macro event could lead to huge movement in stock prices and a subsequent shift in open interest levels.

Read Next: BlackRock Reportedly Scraps 60/40 Portfolio Amid High Inflation Environment: ‘Old Assumptions Do Not Reflect The New Regime’


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: EquitiesNewsOptionsMarketsNetflix earnings previewoptionsOTTStreaming service