Netflix Stock Static Ahead of Quarterly Report

The stock has been contending with pressure at the $560 mark for the better part of April

Digital Content Manager
Apr 19, 2021 at 1:45 PM
facebook twitter linkedin

The shares of Netflix Inc (NASDAQ:NFLX) are virtually flat ahead of the streaming company's earnings report, due out after the close tomorrow, April 20. The security was last seen up 0.1% to trade at $547.20. In fact, the equity has traded in a fairly narrow channel between its $540 and $560 levels for most of April, with the upper level keeping the equity from rallying back toward its January peak of $593.29. Despite this ceiling, NFLX sports a year-over-year lead of 29.6%. 

Analysts are mostly optimistic ahead of the event. Of the 31 in coverage, 24 call NFLX a "buy" or better, compared to seven "hold' or worse ratings. Meanwhile, the 12-month consensus price target of $622.74 is a healthy 13.8% premium to current levels. 

The options pits have been generally bullish, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Netflix stock sports a 10-day call/put volume ratio of  2.44. This ratio stands higher than 91% of readings from the past year, meaning these traders are picking up calls at a quicker-than-usual clip. 

Looking back at its past eight earnings reports,  NFLX tends to drop lower during its post-earnings session, though it notched an impressive 16.9% after its latest quarterly report in January. The equity has averaged a next-day move of 6.3% over the past two years, regardless of direction, though this time around the options pits are pricing in a much bigger 11.3% move. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners