Options on Netflix Inc.’s stock NFLX are priced for a near-double digit move on Friday, following the streaming video company reports fourth-quarter results which are due out after Thursday’s closing bell. An options strategy known as a straddle, which is a pure volatility play that involves buying bullish and bearish options at that same price, is priced for a one-day post-earnings move of $31.20, or 9.
An options strategy known as a straddle, which is a pure volatility play that involves buying bullish and bearish options at that same price, is priced for a one-day post-earnings move of $31.20, or 9.7%, in either direction, according to data provided by Matt Amberson, principal at Option Research & Technology Services . That’s less than the average post-earnings moves over the past 12 quarters of $34.52%, or 10.7%, Amberson said. Based on current prices — the stock was down 1.2% at $322.