Netflix Options Priced 9% Earnings Move as Calls Led Trading

Netflix (NFLX) options priced a 9% share move ahead of its Oct. 20 earnings announcement, as call purchases outnumbered put purchases.

The estimate described the size of the move reflected in options prices, not whether shares would rise or fall. Netflix’s median move after its past eight earnings reports was 7.25%.

The 9% estimate was the largest ahead of a Netflix earnings report since the third quarter of 2022. Options then priced an 11% move, and shares gained 13% after the results. Netflix stock stood nearly 50% below its all-time high heading into the Oct. 20 announcement.

Options activity exceeded 150% of average daily volume by noon ET (16:00 UTC) on Oct. 20.

By noon ET (16:00 UTC) on Oct. 20, traders had bought more calls than puts and sold more puts than they bought. Calls accounted for six of the 10 most-purchased contracts; five of those calls were set to expire Oct. 23.

A sale of Nov. 20 $70 puts totaled roughly $2 million. Traders also bought more than 3,500 Oct. 23 $80 calls, paying over $210,000 in premiums. Netflix shares would have needed to gain at least 20% by the Oct. 23 expiration for those calls to break even.