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Netflix Pops on Ice Cream Deal

Netflix is due to release earnings next week

Digital Content Manager
Jan 16, 2020 at 9:49 AM
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Netflix Inc (NASDAQ:NFLX) stock is popping today, after the streaming giant announced its partnership with Ben & Jerry's to create a flavor of ice cream called "Netflix & Chill'd," which will feature fudge brownies and pretzel swirls in peanut butter ice cream. The stock is up 1% to trade at $343, at last check.

This announcement comes just one week ahead of Netflix's long-awaited quarterly earnings report, which is due out after the close next Tuesday, Jan. 21. In the past eight post-earnings sessions, NFLX returns have been split, averaging a next-day move of 6%, regardless of direction. This time around, the options pits are pricing in a next-day swing of 8.6%. 

Speaking of options, traders have rarely been more bullish on the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In fact, NFLX's 10-day call/put volume ratio across this trio of exchanges sits at 2.40, and ranks in the top percentile of its annual range. 

Like we mentioned earlier this week, NFLX has been on a tear higher lately, pushing up against recent resistance at its $345 region. While the stock has yet to clear this area, it's already up more than 5% for 2020 -- and has been one of the best stocks to own on the S&P 500 Index (SPX) in January.

 

 

 
 

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