With the earnings report coming up in a few hours, this week's options are suggesting a trading range of $64 to $75.50. The put/call volume ratio sits at .91, which is slightly bullish, and the put/call OI ratio at .63 is more bullish. IV is at 131%, which is very expensive. The stock dropped after the last 5 earnings reports. There are 52 analysts with an average target of 91.13, implying 31.51% upside.
Bull case: Netflix's scale advantage, expanding ad-supported tier, and high-margin operating model position it for sustained operational leverage and long-term EPS growth.
Bear case: decelerating core organic engagement, high bid costs for live broadcasting rights, and C-suite leadership turnover present near-term execution and valuation risks.
Initially I was thinking a bear bet, but after the research I switched the plan to a bull bet.
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