📌 Netflix’s Implied Volatility Before Earnings Rises to a More Than Three-Year High
Before Netflix’s earnings report, the stock price movement implied by the options market was about ±9.5%, which some market participants called the highest level in more than three years. Another post gave a figure of about 9%. These figures reflect expectations embedded in option prices; they do not mean the stock will necessarily move this much in reality, nor do they indicate the direction of the move.
In terms of direction, Netflix’s stock price fell after each of its last five earnings reports. However, five instances are only a limited historical sample and cannot prove that it will fall again this time. Taken together, the two pieces of information indicate that the market has priced in a larger move ahead of the earnings report, while the past declines provide only background and cannot substitute for an assessment of this report’s outcome. The figures come from social media posts and are not accompanied by options-chain or historical price data, so they should still be viewed with caution.
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