View photosNetflix Options Show Prospect for Full Reversal of Disney+ RoutMore
(Bloomberg) — Options investors are positioning for a post-earnings move in Netflix Inc. shares that could more than recoup the $9 billion in market value wiped out since Walt Disney Co. took the wraps off its streaming-video service.
More than a quarter of Netflix open interest is due to expire in the wake of Tuesday afternoon’s first-quarter release, with bullish calls outweighing bearish puts. Prices imply a 7.3 percent post-earnings move in the shares. A gain of that much would land the stock price about 1 percent above where it was before last week’s Disney+ announcement.
Netflix has historically posted very wide post-earnings price swings, averaging 13 percent since 2008. After the past eight reports,