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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 1,103+0.6%Nov 7 9:30 AM EST

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To: ggamer who wrote (1805)1/16/2019 5:30:06 PM
From: Zen Dollar Round   of 2280
 
Some more food for thought:

NETFLIX OPTIONS TRADERS BET ON OUTSIZED EARNINGS MOVE

Bearish betting has ramped up on NFLX recently

Earnings season is about to hit high gear, and first up among the FAANG names is Netflix, Inc. (NASDAQ:NFLX), scheduled to report its fourth-quarter earnings after the close this Thursday, Jan. 17. While NFLX is known for making massive moves after its quarterly reports, the options market is expecting an even bigger-than-usual post-earnings swing in Friday's session.

Specifically, Trade-Alert places the implied earnings deviation for Netflix at 13% -- more than double the 6.4% next-day move the stock has averaged over the last two years' worth of earnings reports. During this eight-quarter span, NFLX has registered only one single-day post-earnings move in excess of 13% -- back in mid-July 2017, the stock popped 13.5% in the wake of its results.

On the charts, NFLX is down 0.7% today at $349.17, but has already added 30% in 2019. This rally has been aided in part by a Goldman bull note, and more recently by the news of its plan to up U.S. subscription prices. At its Christmas Eve closing low of $233.88, NFLX was nearly 11% below its 10-day moving average; as of Tuesday's closing bell, the stock was hovering roughly 13% above this short-term trendline.

More at: schaeffersresearch.com
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