thetaOwl

NFLX

Netflix, Inc.Close $88.09EOD only
Max Pain
$89.00
Next expiry May 22, 2026
Expected Move
±$1.90
2.1% from close
Price Gap
+0.91
Distance to max pain
IV Rank
20
Low premium
P/C OI
0.79
Slightly call-heavy
Consensus
8.0/10
Bullish tilt
Published snapshot: May 20, 2026 close
End-of-day snapshot

This page reflects NFLX options positioning from the latest published market-close snapshot. Intraday price and contract changes are not displayed.

Published Snapshot
May 20, 2026 close
NFLX Earnings Report
Analysis based on market close March 31, 2026

Historical consensus-supported lens with full content, report chain context, and metric rail.

You are viewing an older report from March 31, 2026. A newer earnings report is available for May 20, 2026.

View latest report

Earnings Verdict

Earnings in 17 days (4/16). IV for the post-earnings expiry (4/17) is sharply elevated at 49.0% vs 33.5% pre-earnings, pricing a ±8.6% move. Historical data shows NFLX consistently under-moves its expected move and has a high beat rate, strongly favoring premium-selling strategies. The key risk is the elevated VIX environment potentially muting the IV crush.

Confidence:
7 / 10
base 5; +1 explicit earnings date (4/16); +1 strong historical under-move data; +1 IV kink is sharp and earnings expiry is clearly identified; -1 elevated VIX environment (VIX 26.8) may dampen crush magnitude; -0.5 spot above max pain, pinning less likely
Most important: Historical under-move pattern (2.4% actual vs 4.3% prior EM) is the primary edge. The 4/17 expiry's IV is 15.5 points above the 4/10 expiry, confirming a significant earnings premium.
📅Earnings date confirmed as ~4/16 based on EPS estimate and sharp IV kink at 4/17 expiry. 17 days out allows time for IV to build further.
📊Key change from prior report: Expected move tightened slightly (±8.6% vs ±9.0%) and spot rose to $95. The IV kink remains sharp, confirming the earnings play.
⚠️Elevated VIX environment (26.8) may reduce the magnitude of the post-earnings IV crush, a headwind for pure IV crush strategies.

Regime Classification

Vol Regime
Normal (IV 47%)
Gamma Regime
Pinning (GEX +$189.2M — mean-reverting)
Flow Regime
Mixed (net prem $116.4M, P/C 1.46)
Spot vs MP
Above max pain by 3.3% (spot $95.00 vs MP $92)
Gamma flip: ~$5.00Extremely low gamma flip (~$5) due to massive put OI at $5, indicating structural support is irrelevant. Gamma regime remains pinning/mean-reverting.

Earnings Overview

Next earnings: 2026-04-16 (17 days)implied (EPS estimate for 4/16, IV kink at 4/17 expiry)

Expected moves:

  • 4/17 (18d): ±$8.20 (8.6%) [$86.80 - $103.20]

IV Setup

Term structure: Sharp kink at 4/17 expiry (49.0% IV), elevated vs 4/10 (33.5%) and 4/24 (46.1%).

Crush estimate: ~12-16 vol pts post-earnings, back to ~33-37% range.

Skew: P/C ratio of 1.46 indicates continued put buying dominance in recent flow.

Historical Context

Beat rate: 75% (3/4 quarters shown)

Avg move vs expected: Actual 2.4% vs prior EM 4.3% — consistently under-moves

Directional bias: 3/4 quarters gap up post-earnings

Key Levels

1Max Pain (4/17): $90
2EM Bounds: $87 - $103
3Call OI Wall: $100 (67,145 OI)
4Spot: $95.00

Flow Highlights

Heavy volume in $95P 4/02 (5,969 vol vs 1,393 OI) at 36.7% IV.

Near-term at-the-money put buying, likely a hedge for earnings or a bearish bet on a pullback to max pain ($92).

Massive net premium inflow (+$116.4M) with put-heavy volume (P/C 1.46).

Large bullish dollar flow is conflicting with put-skewed volume, suggesting institutional hedging or complex positioning rather than outright bearishness.

Unusual activity in far OTM calls ($70C 4/24, $31C Jan-27) and puts ($126P 4/17, $130P Dec-26).

Likely speculative, low-probability bets or part of multi-leg strategies, not strong directional signals.

Strategies

Iron Condor (Premium Sale)
Sell $87/$82P x Buy $103/$108C 4/17
Credit: $2.30-$2.70
Max loss: $2.70
Max gain: $2.50
BE: Downside: ~$84.70, Upside: ~$105.30
Trigger: Enter 3-5 days before earnings (4/11-4/13)
Historical under-move edge is the core thesis. Wings are placed just outside the expected move bounds ($87/$103) to capture elevated IV while targeting a move within half the EM. The 8.6% EM provides a wide buffer.
Outperforms: Stock stays within historical under-move range (roughly ±3-4%).
Underperforms: Gap exceeds ±11% (outside condor wings).
Short Strangle (Higher Credit)
Sell $87P x Sell $103C 4/17
Credit: $4.20-$4.80
Max loss: Unlimited
Max gain: $4.50
BE: Downside: ~$82.80, Upside: ~$107.20
Trigger: Enter 2-3 days before earnings if IV on 4/17 expiry > 48%.
Maximizes credit from elevated IV and expected crush. Wider breakevens than the condor (by ~$2 on each side) due to no long wings. Optimal for accounts comfortable with undefined risk, betting heavily on the historical under-move and pinning.
Outperforms: Stock stays between $88 and $102.
Underperforms: Sharp gap beyond breakevens.
Put Calendar Spread (IV Crush Play)
Buy $90P 4/24 (46.1% IV) x Sell $90P 4/17 (49.0% IV)
Max loss: Debit paid
Max gain: IV crush on short leg + long leg appreciation if stock drops.
BE: Complex; optimal if stock is near $90 at 4/17 expiry with IV crush.
Trigger: Enter 7-10 days before earnings to capture full IV kink.
Exploits the 2.9 vol point kink between 4/17 and 4/24 expiries. Targets the $90 max pain level. The short leg in the earnings expiry will experience severe crush, while the longer-dated long leg retains more time value.
Outperforms: IV crushes post-earnings and stock is near or below $90.
Underperforms: Stock rallies sharply above $95 or IV expands into earnings.
Bullish Risk Reversal (Low-Cost Directional)
Sell $87P 4/17 x Buy $100C 4/17
Credit: $0.30-$0.70
Max loss: Unlimited upside, limited downside below $87.
Max gain: Unlimited above $100
BE: N/A (synthetic long position)
Trigger: Enter on any dip toward $93.
Capitalizes on historical gap-up bias (3/4 quarters). Sells a put at the lower EM bound to finance a call at the key $100 resistance (call OI wall). Defines risk below the lower EM bound for a low-cost, leveraged bullish bet.
Outperforms: Stock rallies post-earnings, exceeding $100.
Underperforms: Stock declines below $87.

Risk Assessment

!Gap Risk: Expected move is large (±8.6%). While history favors under-moves, a significant guidance change could trigger a move beyond the wide wings.
!IV Crush: Significant crush (~12-16 vol points) is priced in, but a high VIX (26.8) may limit the post-earnings volatility drop, hurting short premium strategies.
!Liquidity: Excellent (4.95M+ OI). No issues.
!Sizing: Size premium-selling strategies for max loss of 1-2% of portfolio. The wide EM means position deltas will be low initially.

What to Watch

?IV for the 4/17 expiry—monitor if it climbs above 50% for better credit on short strategies.
?Spot action relative to the $90 max pain for 4/17—a move toward it would increase pinning probability.
?Flow in the $87 put and $103 call strikes as earnings approach for last-minute positioning clues.
How to Use These Reports
This earnings reflects the market close on March 31, 2026.
What the reports do

Each report translates the same market-close options snapshot into a specific lens such as directional bias, premium-selling posture, flow quality, or earnings setup.

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What to remember

These are interpretation layers, not execution guarantees. Validate the setup against chain liquidity, expected move, and exposure before sizing risk.

If the report conviction and the raw data disagree, slow down and resolve the mismatch before sizing risk.