uploaded image

Netflix (NFLX) Seeks to Beat Q1 2023 Earnings Expectations

By:Mike Butler

Netflix (NFLX) Earnings Expectations 

Netflix (NFLX) announces their quarterly earnings on Tuesday, April 18th after the market closes. After three earnings per share (EPS) beats in a row, they reported a miss last quarter. Expectations are that the popular streaming company will report a $2.86 EPS on $8.18 billion in revenue. Netflix launched their ad-supported tier in November of 2022, so the markets will have more information and guidance on that release after the earnings report and conference call on Tuesday. 

NFLX Stock Performance This Year

NFLX Stock Performance This Year

NFLX is up just over 10% on the year, which is outperforming NDX the NASDAQ 100. It has retreated from the highs realized in February, but the stock is up over 50% from June of 2022, so relative performance is still strong. NFLX is currently trading around $330 a share as of Monday, April 17th.

NFLX Earnings Expected Move

NFLX Earnings Expected Move

Looking at the implied volatility environment of the options market in NFLX, we can derive that the expected move for the rest of the week is at $28.55 as of Monday the 17th – this includes the earnings announcement of course, but there will still be some expected price movement after the fact. Regardless, this expected move for the week is just shy of 10% of the notional value of the stock price, which is high for an earnings announcement for any stock.

Looking at the expected move for this week relative to the next few months, we can see that the options market implies a huge chunk of the expected move for the next few months to be priced into this weekly cycle – this could mean fireworks for the stock price if the expected move is realized or exceeded on the earnings announcement.

netflix stock options pricing

Looking further at the options market, we can see that the market is pricing in the risk of a high-velocity move to the upside – this is known as call skew. The equidistant call and put from the stock price are trading for different values, and the call is trading for $4.95 which is significantly more than the 300-strike put which is trading for $3.70.  

This does not mean that the stock price is going to go up, it just means that the market believes the risk of a high-velocity move this week is to the upside. 

All eyes will be on NFLX earnings Wednesday, April 18th after the market closes – tune in to see if there are fireworks in the stock price! 

Join Mike on Options Trading Concept Live every trading day from 11a-12p CST for a look at earnings trades, options strategy & concept discussions and more! 


Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.