Netflix Inc (NASDAQ:NFLX) is scheduled Thursday to report its fourth-quarter earnings. Shares of the streaming service company have lost almost 14% year to date.
On CNBC's "Options Action," Tony Zhang said the stock traded nearly 1.3 times its average daily volume on Wednesday.
“But the market is currently implying about a 7.5% move versus the 6.2% that we’ve seen over the last sight quarters. [It’s a] fairly substantial deviation,” Zhang mentioned.
See Also: Cathie Wood's Ark Trims Exposure In Netflix Ahead Of Earnings Report
There was a buyer of 725 of the January / March 500 straddle swaps for an average price of $25.88 per contract, he said.
The trade implies the stock may rise or fall substantially by March but may not move significantly on earnings.
